Since the end of 2019, the world has not returned to a normal routine with the COVID-19 pandemic. The pandemic has minimized social life. Till now, social distance has been considered the safer option. It is the reason that business of shopping malls and local markets has dropped real fast. It was the time when billions of people shifted their shopping from a physical place to an online site. Whether you want to get groceries, medicines, dresses, electronics, or anything of daily use, you can shop through the e-commerce markets.
Wallapop, Barcelona based startup, initiated to invite people to sell their used items. People with low economy or searching for a quality item at a reasonable price can get benefited from this platform.
Recently, Wallapop raised $ 191 million with the help of many larger ventures. The aim is t improve and expand the infrastructure of the company. Wallapop since its existence has been working on uplifting its infrastructure.
Nearly 200 million funds were raised to increase the number of users in Spain. Wallapop has never worked to increase the categories of goods it sells. Besides, it intends to approach the international marketplace outside Spain. The sole purpose of fundraising by the Wallapop is to expand the business to the general public in Spain.
An introduction to Wallapop
Wallapop Barcelona, a Spanish company, was founded in 2014. The company aims to sell or resell the used goods. It also traded hand-made crafts and artistic products that people made by themselves at home. A layperson can access the Wallapop, the marketplace, by getting registered through its official app.
The users of the app can resell their used items through this online marketplace just like Craigslist. Wallapop is also considered a classified listing website. Wallapop gained popularity in 2015 when its revenues exceeded to 1billion. The transaction record of the Spanish company was the highest one as a startup.
The current working status of the Spanish Startup
CEO of Wallop state that the startup has gathered 1.5 million users that is nearly half of the total Spanish population. App Annie records that Wallop has maintained the 4th number in the ranking of Spanish startups.
Wallop has initiated its shipping services named Envios. Currently, 20 % of the goods have been shipped through Envios. The company intends to increase shipping within the country and across countries. The purpose of the Envios services is to expand trade from local people to worldwide.
Large ventures- encompassing the strategic marketplace
A marketplace of second-hand items may get slowed down in the brand recognition trends. But many large ventures backed up the startup to upraise the vision. Larger ventures like Mangrove Capital, Northzone, and Eight Road ventures have supported the startup to continue its successful journey.
In 2016, Wallapop took a strategic step and got merged in Letgo. The purpose was to get access to the European market as well. The Spanish startup continued working under the brand Wallapop. Later on, the merge was dismissed.
Naver, a South Korean-based Corporation, is well known for its technology and large investments. The corporation got popular in 1999 as it launched its first web portal. Till now, Naver has been serving in the field of search engines, e-news, e-mails, and contains the world’s first largest Q/A knowledge hub. It is the first time that Naver has invested such a greater amount of 115 million in Wallapop to expand its technological experience.
This strategic investment is ready to benefit both parties. Wallapop will get the experience of Naver technology in full swing. On the part of Naver, it will help the Spanish Startup to follow the foot trail in the European market.
Factors behind the success of the e-commerce business – Wallapop
Numerous startups lifted in days, in the past, and vanished as quickly as they were developed. But the story got changed about the Wallapop. The Spanish e-commerce marketplace became popular among the public in no time and yet stands in distinction. Numerous factors contributed to the success of the startup-like:
- COVID-19 has uplifted the business of online shopping. People consider it safe to shop without getting in contact physically.
- Many people lose their jobs in the pandemic of COVID-19 and others lived hand to mouth due to low business. It instigated the people to earn money by reselling their used items or any artistic work.
- Such platforms are often appealing to the general public to meet the needs of the latest trends, fashion, and other necessities of life.
Wallapop has plunged into the stream of success and yet continuing its journey. It got possible as Facebook and Amazon are not so open and common services in Spain. Another larger factor was the economic uncertainty during the pandemic. The first wave of COVID-19 was strict and tougher that restricted the movement and increased the variability. The financial burden caused the people to clear their closets and earn money from the used products.
Wallapop stated that the fundraising was completed at the valuation of $840 million. Korelya Capital headed the fundraise with other large ventures including Naver, accel, insight partners, and all previous large ventures of Wallapop.
Unlike Amazon, Wallapop does not include selling food and does not offer services to retailers. Wallapop has a unique infrastructure and style of selling items online. It is expected to enhance its experience of the local market to the international marketplace.
Some people intends to clear the clutter from home others want to replace the older items with new ones. Some people do not want to increase the trash on the earth. The selling of older items is a greater source of recycling. Another bigger fact is the financial drop down in COVID -19 pandemic that affected the masses around the globe. Whatever the case is, the business of Wallapop, a digital marketplace of second-hand goods, has been growing day by day.