South Korean net giant Naver puts up €81 million for Wallapop

Naver has reportedly led an €81 million round at a reduced valuation in dollar terms, but a good result for Wallapop nonetheless given the economic picture.
South Korean net giant Naver puts up €81 million for Wallapop

Spain-based second-hand marketplace Wallapop has received €81 million euros in a round led by the South Korean consumer Internet tech giant Naver Corp (updated to include latest from TechCrunch, additional reports from Korea's Pulse News/ La Informacion).

Naver, an existing investor, is expected to participate via an investment from its LP venture capital vehicle, Korelya Capital, in which it is the largest shareholder.  The round will be recorded as an extension to Wallapop's $191 million series G raise in February 2021, with the value adjusted from €690 million to €771 million. Also participating are existing investors Accel, 14W and Insight.

The higher valuation reflects the larger funding ticket but there is no additional leverage given countercyclical trends across tech since 2021, TechCrunch says. Indeed in dollar terms, it's technically a down round valuing the business at $835 million, though only because the euro's weaker right now.

Naver's entry into Wallapop's share capital would make sense given last month it took ownership of a similar, US-based  marketplace for used goods, Poshmark, in a $1.3 billion investment. As of yet, there hasn't been official confirmation from Wallapop of the news.

With a reported 15 million users, Wallapop reportedly leads the Spanish second hand market, taking a 70% market share, but it is looking to generate further revenue growth by competing in other European territories.

The funding will support these goals. First, Wallapop plans to reinvest capital in the Latin markets of Spain, Italy and Portugal, having apparently clocked up 2.4 million Italian downloads in the first half of 2022. R&D and data science are also being funded to bring about improved discovery and personalisation features, TechCrunch said.

A funding agreement was seemingly reached with Naver late last year and is expected to be one of the biggest 2022 deals in the Spanish ecosystem, Spanish news publication La Informacion added.  

The funding reportedly comes on the back of 40% revenue growth at Wallapop in the 2022 financial year, with turnover totalling €72 million. 

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