Through the entire locks and venue closures, as well as the other social distancing measures put in place by governments and individuals to slow the expansion of COVID-19, e-commerce remains an ongoing and vital service.It’s not something that was required to be done; it’s been a vital source of life for many in a time where nothing else seems normal. Today, one startup that saw an increase in the quality of its services because of this trend is now announcing a massive fundraise to help fuel the growth of its business.
Wallapop Wallapop, an online marketplace that is based in Barcelona, Spain, that lets individuals resell items they have used or even sell items such as craft items they design themselves, has collected EUR 157 million ($191 million at the current rate), which it intends to use to keep building the infrastructure that supports its platform to grow the number of customers who utilise it.
Wallapop has confirmed that the money is worth EUR 690 million ($ 840 million), a significant increase from the $570 million price tag that Wallapop sources told us in 2016.
The fund is managed by Korelya Capital, a French VC fund backed by Korean firms Naver and Naver, as well as Accel, Insight Partners, 14W, GP Bullhound, and Northzone, all of which have previously supported Wallapop.
According to Annie statistics, the company currently has 15 million customers – roughly half of the population of internet users in Spain, as Chief Executive Officer Rob Cassedy pointed out to us earlier in the day – and maintains a solid ranking of No. 4 among the country’s shopping apps.Annie.
The company has also recently launched a shipping service known as Envios, which helps buyers get the goods they’re selling. This has expanded the scope of local sales to include sales that are available across the nation. About 20 percent of all goods get shipped through Envios at present, Cassedy said The plan is to keep doubling up on the service and its related offerings.
Naver is itself a major company in the field of apps and e-commerce and is the company behind the Asian messaging platform Line and other digital properties; therefore, this is part of a strategic investment. Wallapop will be relying on Naver along with its technologies for its own R&D and on the Naver side, it will allow the company an advantage within the European market during a period when it is improving its approach to the field of e-commerce.
The investment is an intriguing change for a company that has experienced some noteworthy jumps and stops.
It was established in 2013 in Spain It quickly climbed to the top of the charts in a sector that has been traditionally slow to adopt the concept of e-commerce instead of brick-and-mortar retailers.
In 2016, Wallapop merged with a rival called LetGo as part of a larger strategy to penetrate market share in the U.S. market with more capital.
However, by the end of 2018, the plan was scrapped, and Wallapop was quietly selling its share of the company to a buyer for $189 million. LetGo raised an additional $500 million on its own in the same time frame.However, the company’s fate was not to remain an independent company as it was eventually bought by another rival in the online classifieds industry, OfferUp, in 2020 for an undisclosed amount.
Wallapop has, over the past two years, primarily focused on expanding its presence in Spain instead of chasing businesses further afield. instead of expanding the variety of goods it can offer on its platform It doesn’t offer food products, work with retailers on an Amazon-like marketplace, or intend to expand into video or sell other digital products; it’s focused on attempting to improve the user experience it offers its users.
“I spent 12 years at eBay and saw the shift from used to new goods,” said Cassedy. “Let’s simply say that it wasn’t the route I thought we should go with Wallapop. We’re focused on creating unique products, with the vast majority of them being secondhand and some handcrafted. “This is different from large-box stores.”
This could be because the company hasn’t exploded and boomed as many startups do, particularly ones that are fueled by millions of dollars in investments and hype, some of which pay off with a roaring success and others that are not cataclysmically successful. It has also meant that the company has remained in the marketplace, which may be based on a solid foundation.
Wallapop’s rise in the past year has been due to specific developments in the market, which were partly caused by the COVID-19 virus. Each of these trends has contributed to establishing a reputation for Wallapop as a sort of high-end digital car auction or flea market.
The people who are spending more time at home are focusing on clearing the spaces and getting rid of items. Many are looking to purchase new things since they’re spending more time at home; however, they are looking to save money on them, possibly due to job uncertainty or other uncertainty in the economy. Others have been jobless or working less and are now entrepreneurs, developing their own products to market at a lower cost.
In all those instances, there is an effort to improve sustainable living, and people are making less waste for the environment through recycling and reusing items.
However, Facebook hasn’t really made huge strides in the US via its Marketplace as well, and Amazon has not been seen as an imminent threat to Wallapop Cassedy said.
All of them have been a major influence on Wallapop’s operations However, it wasn’t always like this. Cassedy claimed that the initial lockdown in Spain caused business to plummet since people had to face strict restrictions on their movement and were unable to go out, except for essential tasks like purchasing food or taking themselves to hospitals.
Spain’s Wallapop has raised $191 million and an estimated value of $840 million for its classifieds marketplace.
Through all locks and closures of venues along with the other social distancing policies implemented by government and individuals to halt the development of COVID-19. E-commerce continues to be a vital and continuous service.It’s it’s not something that had to be carried out, it’s been a crucial source of income for many during an age when nothing else is normal. One startup today which saw an increase in the standard of its services due to the trend, is now planning an enormous fundraise to help to expand its business.
Wallapop Wallapop, an online marketplace based within Barcelona, Spain, that allows users to offer items that they’ve previously used , or even sell things like craft items that they make themselves, has earned EUR more than 157 million ($191 million at present rate) that it plans to utilize to continue developing the infrastructure to support its platform to expand the number of users who use it.Wallapop is confirming that the cash has a value of EUR 690 million ($ 840 million) an increase of a lot from the price of $570 million that Wallapop sources informed us of in 2016.
The fund is run through Korelya Capital, a French VC fund that is backed by Korean companies Naver as well as Naver, along with Accel, Insight Partners, 14W, GP Bullhound, and Northzone and all of them have previously been a part of Wallapop.
According to Annie data Annie statistics, the company has 15 million customers , which is about half the number of users of the internet in Spain according to the Chief Executive Officer Rob Cassedy pointed out to us earlier in the day and has maintained a strong position of No. 4 among the country’s online shopping apps.Annie.
The company has also introduced a delivery service known as Envios which assists customers get the items they’re selling. The service has expanded the range for local sale to encompass sales accessible across the country. A little more than 20% of all items are shipped via Envios currently, Cassedy said The plan is to continue to double up on the service as well as its associated products.
Naver is a major player in the area of apps as well as e-commerce. Naver is the main company responsible for its Asian messaging platform Line as well as other digital properties. As such it is an investment plan that is strategic. Wallapop will depend on Naver and its technology to conduct its own R&D and , on the Naver side it will provide the company to benefit from the European market at a time that it is expanding its strategies in the area of eCommerce.
The investment is a fascinating one for a company which has witnessed some remarkable leaps as well as stops.It was first introduced on the 13th of March 2013 Spain It quickly rose into the upper echelons of charts in a market which has traditionally been slow to embrace the idea of online shopping instead of brick and mortar retailers.
In the year 2016, Wallapop merged with another competitor known as LetGo in an overall strategy to gain market shares within the U.S. market with more capital.
However, at the close of 2018 the plan was pulled and Wallapop was selling its stake in its company for a purchase 189 millions. LetGo raised an additional $500 million within the same time period. However, the business’s fate was not to remain an independent business because it was later acquired by a competitor within the online classifieds market, OfferUp, in 2020 for an unspecified amount.
Wallapop has, in the last two years, mostly focused on growing its reach within Spain instead of trying to find businesses from further afield. Instead of expanding the range of goods that it sells through the platform It doesn’t provide food items, collaborate with retailers via an Amazon-like marketplace, nor do they expect to venture into video, or sell other digital goods It’s primarily focused on trying to enhance the experience for its customers.
“I spent 12 years at eBay and saw the transition it made to new goods from used goods,” Cassedy added. “Let’s just affirm that it was not the way I believed we should take in the case of Wallapop. We’re determined to create unique products that are largely of them secondhand, and some being handcrafted. “This is a different method of operation that is different from the big box stores. “
It could be due to the fact that the company hasn’t gone through a massive growth spurt and grown as many startup companies have, specifically those which are powered by millions of dollars of investment and hype. Some of these result in a massive achievement, and some that haven’t been cataclysmically successful. It has resulted in the fact that the company remains in the market and could be built on an established foundation.
Wallapop’s growth over the last year was due to certain developments on the market that were in part triggered by COVID-19. Each of these changes has led to creating a reputation for Wallapop as a type of high-end online car marketplace or auction.
The people working from home, are focusing on clearing out their spaces as well as getting rid of things. Many are trying to get new items as they are spending more time at home, but, they’re also trying to cut costs on these items, perhaps because of job instability or other uncertainties in the economic system. Others have been in a jobless state or are working less or are entrepreneurs making their own products that they can sell at a lower price.
In all of those cases there is a desire to make sustainable living more sustainable, and people are reducing waste to the environment by recycling and reusing things.
Yet, Facebook hasn’t really made significant progress in the US through its Marketplace also and Amazon hasn’t been considered a danger against Wallapop Cassedy said.
Each of these have had significant influences on Wallapop’s business. But, it wasn’t always as this. Cassedy claimed that the lockdown’s initial repercussions in Spain led to a decline in business as people had to endure rigid restrictions on their movements and could not leave the house, unless for necessities like buying food items or taking themselves to hospital.
“It was a roller coaster for us,” stated the man. stated.
“We entered the year with incredible momentum, very strong.” However, he also pointed out that the decline began in March. It was at this time that “not only was it not acceptable to leave your home and conduct business locally, but the post office also stopped sending out parcels. “Our company was able to fall into a downward spiral in the months of February and March. “
After the restrictions were lifted during the middle of May the market were able to recover quicker than ever before he added.
“The economic uncertainty caused people to seek out more value and better deals, spend less money, and yes, they were clearing out closets,” said the analyst. “We noticed that numbers bounced up to 40-55 percent growth year-onyear in June. “
The most important question was whether the increase was a temporary spike or whether it was actually the result of a trend. He said that it’s continued to grow from 2021. “It’s confirmation of what we consider to be longer-term trends that drive the company. “
Naver has created an immense business around keeping a strong regional focus in its products in the past. it is probable that it to keep this tradition regardless of whether it expands by investing in a new regional player. Although it is clear that Wallapop has an official website that is located inside the U.K. It’s not something it’s been promoting in a commercial way.
“The global demand for C2C and resale platforms is growing with renewed commitment to sustainable consumption, especially by younger millennials and Gen Z,” Seong-sook, who is director at Naver Corp., in an announcement. “We support Wallapop’s policy of conscious consumption, and are thrilled to assist the growth of Wallapop by utilizing our technology to create international synergies. “
It’s a good thing for me as an individual consumer that sustainability concerns are receiving thought about. I hope this isn’t just a trick that isn’t a true recognition that this issue should be taken seriously and embraced.
“Our economies are shifting towards an environmentally sustainable model of development. After the investment in Vestiaire Collective last year, Wallapop is the latest move by Korelya to make a commitment in the circular economy. COVID-19 will only help to further strengthen the movement. Korelya’s mission is to help support the next generation of European technological leaders. We believe that Naver has demonstrated its technology and product innovations that will help Korelya keep its position as a leader throughout Europe,” added Fleur Pellerin, Korelya Capital’s CEO. Korelya Capital.innovation, which will help the company to maintain its leadership position across Europe,” added Fleur Pellerin, the CEO of Korelya Capital.
