OfferUp, a platform that helps people buy and sell things locally, has raised a whopping $119 million in funding led by Warburg Pincus, with participation from new investors GGV Capital and Altimeter Capital.
Founded out of Seattle in 2011, OfferUp is an eBay-style mobile-focused platform designed to make it easy for people to get rid of unwanted stuff — such as clothes, bags, laptops, mobile phones, and everything in between — and make a little money by finding interested buyers nearby.
OfferUp has now raised more than $210 million in funding, and the company says it will use this money to “enhance its popular user experience and expand to new markets,” according to a company statement. Indeed, the company only operates in the U.S. for now.
“We have built OfferUp into the kind of marketplace that people want — one that allows them to buy and sell things right in their own local communities, directly from their mobile phones,” said OfferUp CEO Nick Huzar, in a press release. “We are committed to building the best experience possible. We’re the largest mobile marketplace in the United States and will use this new financing to continue that momentum. Warburg Pincus is among the most respected investors in the tech community, and this fundraising indicates their confidence in our position.”
Online marketplaces have emerged as key drivers in the digital economy. From eBay to Airbnb and beyond, matching buyers with sellers is big business, and we’ve seen some notable startup investments in the space recently. In the past year, recruitment marketplace Hired has raised $40 million, secondhand clothing marketplace Vinted has nabbed $27 million, Etsy-style shopping marketplace Notonthehighstreet.com has closed $27.5 million, and online auction house Catawiki has secured $82 million.
“The market of local buying and selling hadn’t changed significantly in two decades until Nick and Arean (Van Veelen, cofounder) imagined what a smartphone could do to deliver an easier, faster, and more enjoyable user experience,” explained Justin Sadrian, managing director at Warburg Pincus. “That vision has helped expand the market, as people who never before posted items for sale have discovered how easy it is to use OfferUp. Today, OfferUp is one of the fastest-growing marketplaces, turning a passion for user experience and engagement into a category leader in local buying and selling.”