Wallapop achieved profit of €134 million ($149 million U.S.) in 2018, its first profitable year since launching in 2013. The positive numbers are due entirely due to Wallapop selling its stake in Naspers-owned competitor LetGo for $189 million. The company also saw its income increase.
Catalan news site Ara.cat reported that Wallapop invoiced €13.6 million in 2018, a 20% year-on-year increase. However, it noted, the company had grown revenue by 70% in 2017 and still posted a €36 million loss that year.
Wallapop founders Gerard Olive, Miguel Vicente and Agustin Gomez launched the app with no obvious revenue strategy and focused at first on building a massive user base. They achieved this through intensive advertising and attracted significant investment. In late 2018, one of Wallapop’s investors, Vostok New Ventures, valued the company at $500 million.
As the app grew to 10 million-plus users, it added paid services, including secure payments, shipping and insurance. It also built and promoted higher value auto and real estate verticals.
Under CEO Rob Cassedy, who took over the executive post from Agustin Gomez in Sep. 2018, Wallapop has built its tech team, appointing former Schibsted executive Pedro Thormodsen as chief product officer. It has also focused on high-volume second-hand sectors like clothing, as well as hosting fashion workshops and a recycled clothes show at Madrid Fashion Week.