Naver will acquire Wallapop, the largest second-hand trading platform in Spain, with plans to use it as a strategic platform for expanding its business in Europe. Wallapop is considered the Spanish version of Danggeun Market or Bungaejangter. It is known to be expanding its service area beyond Spain to neighboring European regions. It features a clean interface and cute characters.

Naver announced on the 5th that it has decided to invest approximately KRW 604.5 billion (EUR 377 million) to acquire an additional 70.5% stake in Wallapop Spain and take over management rights.

Wallapop is Spain's largest C2C platform company for second-hand trading, with a monthly active user (MAU) count exceeding 19 million. It operates as a platform for personal transactions of second-hand goods, covering all areas from daily necessities to electronics, bicycles, and cars. In Europe, interest in eco-friendliness and the circular economy is increasing, and the market for such C2C services and related platforms is reportedly on a continuous growth trend. Wallapop has consistently grown with its user-friendly service, establishing itself as the representative second-hand trading platform in Spain. It is currently expanding its service area beyond Spain to Southern European markets such as Italy and Portugal.

Naver emphasized that it has been paying attention to Wallapop's growth potential from early on. It invested approximately KRW 255 billion over two occasions in 2021 and 2023, securing about a 29.5% stake. This time, to create more substantial collaboration and synergy, Naver has agreed to strengthen the partnership by securing management rights over Wallapop.

Since 2016, Naver has been developing its European business through indirect investment by contributing to funds in Korelya Capital, an investment firm established by former French Minister of Digital Economy Fleur Pellerin. With the acquisition of Wallapop, Naver plans to apply its technologies and business know-how in search, advertising, payment, and artificial intelligence (AI) to the European market. Naver stated, "C2C is a long-tail commerce ecosystem where a variety of product categories and diverse experiences closely related to daily life are shared, and data diversity becomes a competitive edge in the AI ecosystem," adding, "We will integrate data and users in the C2C domain with AI technology to implement new user experiences."

Through this acquisition, Naver will expand its global C2C business, which includes Poshmark, Kream, and Soda, centered in North America, Korea, and Japan, to Europe. It plans to continue its global growth in the C2C sector.

Naver CEO Choi Soo-yeon stated, "Over the past decade, Naver has been investing in the European market while continuously searching for a partner to establish a full-fledged partnership," adding, "Wallapop, as a leader in the Spanish C2C market amidst the threat of global big tech in the global market, will integrate the technology and business know-how that Naver has accumulated to implement new usability and elevate Wallapop to the next level."

She further added, "Through the acquisition of Wallapop, a C2C company with diverse products and stories, we can enhance our understanding of local European users, and Naver's competitiveness will be further enhanced in the AI ecosystem where data diversity is a competitive edge."

Popular News