We're going to be seeing a bigger ToLet, and a more streamlined Jumia. For the profit.
Some inside sources have informed us that ToLet.ng has acquired Jumia House. This acquisition, as we’ve learned is not just for Jumia Nigeria. It stretches all the way to Jumia Ghana and Jumia Angola.
While the value of the acquisition has not been disclosed, an inside source has told us that this deal cost 500 thousand dollars.
And that's strange, when you think about Jumia's billion dollar commitments.
This acquisition was powered by ToLet’s lead investor, Frontier Digital Ventures, a Malaysia-based company.
The CEO of ToLet, Fikayo Ogundipe, said:
“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. 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.”
It’s worthy of note that in 2016, ToLet raised $1.2 million in funding, and according to Fikayo, they’ve raised more undisclosed money. “We’ve raised enough capital to run through this deal and really fund the business and grow.”
The acquisition includes staff, assets, listings, and a network of housing agents. And talking about the teams, Jumia House has three, The Content Team, CRM, and Sales.
The Customer Relationship Management (CRM) team, is part of the acquisition. This is clearly because of their relationship with the housing agents. The Sales team is getting absorbed too.
The Content team on the other hand, is getting dropped.
“This has been a long time coming,” our inside source said, “word was already going round, so most people were already seeking new opportunities.”
But this comes as no surprise, as according to sources, the layoffs were imminent. We do not know at this time the exact amount of employees affected by the layoffs, but we can confirm they aren’t up to five.
“It was imminent, so many of them already resigned earlier,” an inside source said.
The Nigerian internet property listing space is quite busy, and this move clearly gives them a bigger chunk of the property cake.
This single move will give them 65% of the market share. They also get to own a more experienced, and connected team, with the new acquisition.
But there’s a plot twist to this acquisition;
And there’s already a landing page for this product. In one move, we have a new “largest property listings company in Nigeria”.
Although this page is still just a landing page that redirects to the ToLet and Jumia House pages when you search for a listing.
Before this acquisition, Jumia had five products; Jumia Mall(.com), Travel, Food, Deals, House.
Now, Jumia is ditching the Classifieds, and focusing on their three most feasible products; the Mall, Food, and Travel (in that particular order).
So, the Jumia we'll be seeing now, will be a more streamlined company, with a focus on finally reaching profitability.