Online classifieds companies Wallapop and letgo, both Barcelona-founded, are reportedly in talks to merge their U.S. operations. Both startups are well-funded, with letgo securing a $100 million Series A round from Naspers last September. Wallapop is more secretive about its investment history, but it’s estimated the company has secured north of $100 million in funding.
This is the latest news to come from the red-hot online classifieds space. Previously dominated by older sites like Craigslist, the industry has seen a recent renaissance. Startups such as OfferUp, which raised a $74 million Series C at an $815 million valuation last year, have popped up looking to syphon users away from the antiquated incumbents.
With competitors that are both well-funded and based in the lucrative U.S. market, companies like Wallapop and letgo may need to band together to stand a fighting chance. Marketplaces are a bit winner-take-all, after all. U.S.-based Lyft and China-based Didi Kuaidi employed a similar strategy recently to combat Uber’s expansion in Asia, enabling users of either service to use their local platform in the other's market.