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.”
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.