In a major consolidation in the ecommerce space in Africa, Jiji, one of the leaders in the classifieds business in the continent, has acquired African business units of Olx. The deal size and other specifics have not been announced. The deal has been backed by one of Jiji’s principal investors, Digital Spring Ventures.
As a part of the agreement, Jiji will acquire OLX businesses in Ghana, Kenya, Tanzania, and Uganda, pending certain regulatory approvals, and OLX users in Nigeria will be redirected to Jiji.
Sjoerd Nikkelen, General Manager of OLX in Africa, Middle East and Asia comments “We continually evaluate our portfolio of classifieds businesses to ensure a disciplined approach to how and where we allocate capital and management time. With our focus on accelerating the growth of other markets, now is an opportune time to sell our interests in these markets. ”
Following closing of the transaction (which is expected to occur once certain regulatory approvals have been obtained), all users of the sell-and-buy classifieds websites of OLX Nigeria, OLX Ghana, OLX Kenya, OLX Tanzania, and OLX Uganda will be redirected to Jiji.