Frontier Digital Ventures has bought 3 online property classifieds portals from Jumia, a major online classifieds group in Africa.
Malaysia-based Frontier Digital Ventures has acquired three online property classified portals from Africa’s Jumia in exchange for the former’s classified horizontal platform in West Africa, Afribaba.
Under the agreement, Frontier will acquire Jumia’s 100 percent interests in Jumia House Ghana, Jumia House Nigeria, and Jumia House Angola. With this, it will have market leadership in these three markets, it said in a statement.
Frontier CEO and founder Shaun Di Gregorio said the deal demonstrates the strength of the company’s entrepreneur-led online classifieds model, which provides a significant advantage over competitors which are fully owned and operated remotely by major online classifieds groups.
Jumia had expressed significant interest in acquiring Afribaba, Frontier Digital Ventures said in a statement.
“This transaction was a rare opportunity in the online classifieds space, and we are pleased that Jumia, a major African classifieds investor, reached out to Frontier with a strong desire to acquire Afribaba and complete this transaction.” Di Gregorio said.
“The ultimate result for Frontier shareholders is that we have exited Afribaba and created 3 new market leaders in property verticals across 3 key African markets. meQasa is now a clear market leader in Ghana. ToLet is now a clear market leader in Nigeria. AngoCasa is now a clear market leader in Angola. Our businesses are now in a significantly improved position to commence rapid monetisation in their respective markets.” he added.
Jumia assets acquired
Under the agreement, Frontier will acquire Jumia’s 100% interests in Jumia House Ghana, Jumia House Nigeria and Jumia House Angola (“Jumia Assets”).
The Jumia Assets have strong listings, sessions and advertiser customer bases and retain strong competitive positions in each of their 3 respective markets. The monthly sessions comparison of each of the Jumia Assets is provided below.
Frontier has completed a number of successive transactions with Jumia, meQasa, ToLet, AngoCasa and Afribaba to ultimately vend the Jumia Assets into its existing investment
For Frontier Digital Ventures, it’s a different proposition: by acquiring the No. 2 properties in each of these markets, it solidifies and strengthens the No. 1 positions of its sites, and moves a little closer to its goal of being the dominant player in this, key African region.