founder hopes to replicate the Alibaba strategy in the U.S. market.
January 18, 2017 news, mobile applications letgo recently announced a $175 million C round of financing, funding from Naspers and Accel and Insight Venture Partners and other investors. As one of the fastest growing mobile market, letgo is committed to helping users select the services they need in the secondary market. Up to now, the company’s total financing reached $375 million.
letgo from the early implementation of the strategy of not charging the user to its rapid growth, but also to attract investors to support their services. In the creation of a few months, the value of the product on the platform to achieve a leap from $25 million to $20 billion. So far, letgo application downloads reached 45 million times, monthly active users reached 20 million. In 2016, its active user base grew by 359%, the total number of goods sold by the seller every day increased by 960%.
, according to reports, the company’s current valuation of $1 billion, in the crowded classified information market among the top companies. Letgo said that in the next 6 months, the annual total amount of their platform user transactions (the total value of the sale of goods) will reach $23 billion.
support in the early letgo investor Naspers, the company’s founder Alex Oxenford had previously launched a classified ad platform OLX, he said:
we are concerned with the indicator of (user’s) initiative.
letgo does not charge the user’s decision-making is a time tested strategy, they want to beat the online retail market competitors. Just as Alibaba has created billions of dollars worth of online giants in China at a lower cost, Oxenford hopes to replicate the strategy in the us.
Oxenford accumulated experience in OLX shaping his strategic decision to operate letgo. Along the way, Oxenford and many old comrades to achieve a reunion, such as last year, letgo and Wallapop were merged, Wallapop founder Fabrice Grinda has helped Oxenford launch OLX.
in order to attract new customers, letgo introduced an automatic generation of product labels and elements of the function, the function of the combination of artificial intelligence and image recognition technology, through special software to make it easier for users to upload to the product.