Co-founder and CEO of Barcelona-based mobile marketplace Wallapop Agustín Gómez said in an interview that the company would be profitable “within a year”. Traditional classifieds are the “most profitable business on planet Earth,” he added. “[And] we are classifieds 2.0. We’ve already done the hard part, which is to win the country.”

Agustín Gómez

Gómez (LinkedIn profile) was speaking to Patricia Coll, for Spanish newspaper El Pais. Coll posed direct questions about the company’s rather relaxed approach to revenue.

Asked if Wallapop was a “bubble about to burst”, Gómez replied that the company’s business model was clear from the beginning. “We represent a disruption of classifieds, an industry that has existed for more than 20 years,” he said. “There is exact numerical data… about how classifieds earn money.”

He highlighted three revenue streams: advertising, professional sellers, and freemium services. “This model is perfectly clear, and less than seven months after applying it we are almost at the break-even point,” Gómez said.

Wallapop rolled out paid services gradually, beginning with pay-to-promote ads, then deliveries and secure payments. Gómez called this Wallapop’s “zero friction strategy”, and added that the company is also pursuing the above-mentioned traditional revenue streams.

Throughout, Gómez highlighted the fact that Wallapop is the market leader in Spain, putting it in a position to reduce its marketing spend. He said the launch of Facebook Marketplace has not affected its business.



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