YOP, an app for selling new and used stuff, plans to raise funds for the company’s Brazilian operations by 2019, CEO Guido Grinbaum told the AIM Group in an emailed response this week.
Grinbaum said the company’s operations in Brazil are “profitable,” but operate on an “organic marketing mode.”
“We will continue to operate like that until markets calm down. Maybe in 2019, we will seek financing once again following Brazilian elections,” he said.
Grinbaum said it was “impossible” to raise funds in Brazil during the past two years due both to the country’s situation and the local competitive landscape. Naspers’ massive investments in LetGo “scared” investors willing to fund competitors like YOP, he added.
YOP’s competitors in Brazil include OLX Brazil-owned apps Skina and Popsi. OLX Brazil and MercadoLibre also have apps for selling new and used stuff. OLX Brazil is a 50/50 joint venture between Schibsted and Naspers.
Brazil underwent an economic slowdown in recent years. The country’s economy has now started to rebound, but political uncertainty remains due to the up-coming October presidential elections.