Naver Acquires Full Stake in Wallapop for €600M

South Korean tech giant Naver has finalized its acquisition of the remaining 70.5% of Spanish second-hand marketplace Wallapop, achieving complete ownership of the popular platform. This strategic move, valued at €600 million, represents a significant expansion for Naver into the European digital commerce arena. The transaction involved an outlay of €377 million for the additional stake, building upon Naver's prior investment of approximately €190 million since 2021, which had secured them a 29.5% share.

The deal's completion was contingent on securing the agreement of venture capital firm 14W and other minority shareholders who had initially contested the acquisition process. Their eventual acceptance to sell under the same terms as other stakeholders paved the way for Naver to consolidate its position. This acquisition underscores the growing trend of established tech players seeking to bolster their presence in the rapidly expanding circular economy and online resale markets, a sector projected to see substantial growth in the coming years.

Wallapop, founded in 2013 and headquartered in Barcelona, reported revenues of €101 million in 2024. The platform has carved out a significant niche in Spain and other European markets, facilitating peer-to-peer transactions for a wide array of goods. Naver, a diversified technology conglomerate with 2024 revenues reaching €7.27 billion and a market capitalization around €30.9 billion, intends to leverage its technological prowess to enhance Wallapop's capabilities. Key areas for development include integrating advanced artificial intelligence for improved search functionality and user experience, as well as strengthening its overall technological infrastructure.

The strategic rationale behind Naver's full takeover points towards a desire to deepen its engagement with the European market and capitalize on the burgeoning digital classifieds and resale sector. The global online second-hand market is experiencing robust expansion, driven by consumer interest in sustainability and value. Industry analysts estimate this market could reach hundreds of billions of dollars globally within the next decade, making strategic acquisitions like this crucial for market leaders.

Despite the change in ownership, Wallapop will maintain its operational base and workforce of approximately 300 employees in Barcelona. Rob Cassedy will continue to serve as Chief Executive Officer, ensuring continuity in leadership and strategy. This approach aims to preserve the company's established culture and local market expertise while benefiting from Naver's global resources and technological innovation. The founders, Agustín Gómez and David Muñoz, with initial support from Antai, have seen their venture mature into a significant player in the European tech scene.

The transaction values Wallapop at €600 million, with the post-money valuation, considering cash and minimal debt, estimated at approximately €650 million. This marks a notable valuation for a company operating within the circular economy, reflecting its strong market position and growth potential. Naver's investment is expected to fuel further technological advancements and market expansion, solidifying Wallapop's competitive edge against other emerging and established players in the online resale space.