This surely a game changer for the Nigerian tech ecosystem.
The acquisition is noted as a result of the current strength of Tolet in the Nigerian market. Alsom the need to consolidate its expansion and growth plan for operation in Africa.
According to an email sent by Mr Fikayo Ogundipe, CEO and Co-Founder of Frontier Digital Ventures, the acquisition would lead to merging of Tolet and Jumia House.
“This came about from FDV―which has a strong real-estate classified portfolio across Africa―looking at which markets they were strong and where Rocket [Jumia’s lead investor] was weaker. We (FDV) are the ones who acquired Jumia House Nigeria and are merging it with ToLet,” the email reads.
Fikayo also stated that this acquisition would further strengthen Tolet’s position in the Nigerian real estate market.
“In Nigeria Jumia House was number three or number four in online listings. It didn’t make sense for Rocket to burn more capital in that position, so [FDV] approached them on the acquisition.”
On the new company to be formed by this merger and acquisition, Mr Sulaiman Balogun, a Co-Founder of Tolet, explains that the process would lead to the birth of another entity – PropertyPro.
“With the acquisition, ToLet is acquiring the entire Jumia House platform — staff, assets, and their listings and agent network."
“The new PropertyPro entity will combine ToLet’s 60,000 listings with Jumia House’s 22,000 to create the largest online real estate listings platform in Nigeria with 65 percent of the market,” Balogun told TechCrunch.
With 65 percent of Nigerian online real estate market, PropertyPro is surely the new king in town.