Barcelona might very soon have its very first billion dollar startup: Wallapop. Wallapop is already a hot property in countries like Spain, the UK, US, and Mexico and is continuing to grow at an enormous pace.
With more than 6 million downloads so far, it has become one of the most popular online marketplaces for people to buy and sell used products.
Wallapop lets its users post free ads for their products, and they don’t have ads on their app. But, how does Wallapop make money then? In this article, we discuss Wallapop’s platonic rise to the top and how it makes money. Take a look:
What Is Wallapop?
Wallapop is an online inventory or a marketplace where users can buy and sell items. Most of the items sold on Wallapop are generally used, but you can occasionally find new and unopened items too. The Wallapop community is a huge one as the company’s official website states that more than 30 million people have traded more than 3,523,489 products using the app.
The idea to create Wallapop came from the mere thought of bringing the local flea market to smartphones so that users can get great deals at the comfort of their homes. The first version of Wallapop was called Fleaster.
However, one thing that is not quite clear is as to how does Wallapop earn money? Let’s find that out now.
(Image Courtesy: Android Pit)
What Is Wallapop’s Business Model?
If you talk about Wallapop’s business model, you’ll feel that there is no possible way that the app earns any kind of money. But that completely negates that Wallapop is well on course to become Spain’s first-ever billion dollar startup. So, how exactly does Wallapop earn money then?
Well, we dug deep and figured out that majority of Wallapop’s earnings come from investors. Apparently, a lot of angel investors saw an immense potential in Wallapop, and as a result, people have invested more than $50 million in the project. There are certain news reports which claim that Wallapop is soon going to get a funding of a monstrous $100 million from Fidelity Growth Partners.
So, the simple answer to the business model of Wallapop would be that its creators don’t earn a lot of money out of the app itself. Rather, it is the millions of dollars of investment that it gets from angel investors, banks, and other equity firms that drive the revenues and analyses the expenses of hosting the app.
(Image Courtesy: Novo Brief)
Is Wallpop Safe To Use?
Wallpop is just like any other classified platform like Craigslist and your local newspaper. So, there is no problem in terms of safety. However, you should remember that all the transaction should always be carried in cash only.
So, there you have it. All you wanted to know about Wallapop and its business model. How often do you use Wallapop? Let us know in the comments below.
(Featured Image Courtesy: Phoneia)