Classifieds app Letgo raised $100 million from South African Naspers a month ago. They are now challenging Schibsted-owned Blocket on home turf.
The Blocket copycat has been a financial blessing to Schibsted who have replicated the concept in countries throughout the world. So has the South African media giant Naspers.
The two media conglomerates have developed so called classified ad sites one after another and divided the world’s countries between them. They have fought fiercely over the Brazilian market but apart from that kept their distance.
About a year ago, the two companies did however decide to join forces in Brazil as well as Bangladesh, Indonesia and Thailand. The deal was struck between Schibsted, Naspers, Telenor and Singapore Press Holdings.
Regardless of the agreement, Naspers has decided to go on the offense, at Schibsted’s home turf.
The company has fueled in over $100 million in the app Letgo which let’s people buy and sell second hand products. The app has not been launched officially in Sweden but keeps growing it’s user base nonetheless.
During the fall, the app has been climbing the app download lists and is currently the sixth most popular app in the lifestyle category. Just three places behind Blocket’s app.
At the Google Play Store the app is placed fourth in the shopping category. E-commerce giants Wish, Zalando and Alibaba are currently the only apps in that category with more downloads.
Letgo’s growth in Sweden is bad news for Schibsted, who have had Blocket as their number one Scandinavian cash cow for years.