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Nextdoor planning to go public through a $4.3 billion SAPC merger

Nextdoor planning to go public through a $4.3 billion SAPC merger
Nextdoor planning to go public through a $4.3 billion SAPC merger

Nextdoor, a hyperlocal social networking app for neighborhoods, has reportedly announced that it plans to go public via a reverse merger deal with a SPAC (special purpose acquisition company), valuing the company at approximately $4.3 billion.

Sarah Friar, Nextdoor CEO, stated that the deal would bring in a significant amount of profit, over $686 million in gross revenues, on a real blue-chip group of investors, which will further support expansion.

The agreement with special purpose acquisition firm,, Khosla Ventures Acquisition Co II, involves a $270 million private investment by Baron Capital Group, accounts managed by T. Rowe Price Associates, as well as Cathie Wood's Ark Invest.

In a "Squawk on the Street" podcast, Friar stated that Nextdoor, located in San Francisco, will continue to grow into other regions, which will subsequently generate additional content for the social media platform. Friar added that the company will also continue to invest in both small enterprises and its own advertising technologies, to effectively support its monetization as well as its income sources.

Nextdoor, launched in 2011, allows users to plan parties, warn neighbors of impending dangers, and share valuable information like business or pandemic-related news. Recently, following years of criticism for racist remarks on its service, Nextdoor launched an anti-racism notice on the app.

A press release from Nextdoor stated that the app is utilized in over 275,000 neighborhoods across the world and by approximately one-in-three US homes.

According to Friar, Nextdoor's daily active user count increased by 50% last year. The company's average revenue per user, or ARPU, also increased in the first two quarters of 2021. Growing member engagement on the platform and more advanced ad-tech platforms are driving ARPU gains.

Nextdoor is working on additional methods to improve its income, especially around local commerce, local companies, and very innovative ad formats that cannot be found anywhere else.

Source credit: https://www.cnbc.com/2021/07/06/nextdoor-to-go-public-in-4point3-billion-spac-merger-as-ceo-looks-toward-expansion.html

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Sunil Jha

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