Ringier Africa Deals Group, a newly-founded joint venture between Swiss-owned Ringier Africa and South Africa's Silvertree Internet Holdings (Pty) Ltd, today March 23, 2016 announces it has acquired one of Nigeria’s biggest online shopping platforms, DealDey.
The acquisition represents an expansion of Ringier Africa’s portfolio beyond publishing and digital marketing in Nigeria and Silvertree’s first ecommerce investment in the country. It sees the two companies invest significantly in Nigeria’s fast growing multibillion dollar ecommerce sector as part of their partnership in the Ringier Africa Deals Group.
DealDey, the online deals ecommerce platform, was launched in 2011 by serial entrepreneur Sim Shagaya together with Investment AB Kinnevik. With over one million users, 15,000 active merchants and 20,000 verified listed businesses, DealDey is the largest online deals business in the region. In addition to its core platform, DealDey today also comprises of the couponing platform Promohub and discovery platform Lyf, both forming part of the acquisition.
After founder Sim Shagaya left to head Konga in 2013, Etop Ikpe and Kehinde Oriola were appointed as co-CEOs. By February 2015, DealDey had received $5 million in follow-on funding from Kinnevik and began spawning spinoff websites, Lyf and Promohub not long after that.
DealDey Co-CEOs Kehinde Oriola & Etop Ikpe say: "The DealDey team is excited about joining forces with the newlyformed Ringier Africa Deals Group. It offers great opportunities as DealDey brings a wealth of experience in technology, merchant management and consumer behaviour in Nigeria and we will be leveraging the Ringier Africa portfolio in marketing, classifieds and media as well as Silvertree’s ecommerce expertise towards supporting the sustainable growth of the group."
Kehinde Oriola will continue as the CEO of DealDey as part of RADG, while Etop Ikpe will be moving on to new ventures. As acting CEO of RADG, Damien Bonnabel, current Head of e-commerce for Ringier Africa and General Manager of Ringier Kenya, will be working with the management of DealDey and the group’s other companies.
Ringier Africa Deals Group (RADG), the purchasing holding company, has been created by a carve out of the leading Kenyan online deals business Rupu out of Ringier Kenya and of the leading Ghanaian online deals platform Tisu out of Ringer Ghana. The JV’s partners, Ringier Africa and Silvertree, both come with 10+ years’ ecommerce experience. Their mutual aim is to lead the online deals businesses to continued success based on a long-term, joint plan. Key to this is the continued collaboration with local merchants and brands wanting to enter the markets while satisfying clients’ needs for the best service and product offers online.
Silvertree has already expanded its own ecommerce portfolio in South Africa, having acquired PriceCheck from Naspers in November of last year. Ringier Africa’s mother company Ringier AG runs DeinDeal and Geschenkidee, the two biggest online deals and gifting platforms in Switzerland respectively.
Ringier Africa General Manager Leonard Stiegeler says: “Ringier Africa has identified ecommerce as a key area for growth and we are excited by the inclusion of DealDey in the Ringier Africa Deals Group. With the addition of ecommerce experienced Silvertree as a partner and investor, we are on track to significantly increase our interest in the space, with particular focus on serving the important markets of Nigeria, Ghana and Kenya.”
Silvertree Co-Managing Director Paul Cook says: "We are extremely excited to be entering three of Africa's most exciting ecommerce markets, through our partnership with Ringier and joint investment into DealDey, Rupu and Tisu. Through this deal, we get to build on excellent existing platforms as we look to serve Africa's emerging middle class."
"With Ringier's deep content expertise and African footprint, we look forward to further accelerating the growth of these exciting businesses. Our focus will be on rapid but sustainable growth, as Africa's ecommerce industry starts to mature and consumers look for worldclass offerings, excellent customer service and great deals," he added.
Ringier Nigeria GM, Mark Slade says: "I'm really excited about DealDey joining the Ringier family. It makes perfect sense, bolstering our position online in this market. We're excited for the cross-business benefits and look forward to continued success in the ecommerce deal space."
Ringier Nigeria already boasts over 100 staff and the addition of DealDey staff with take the company's total staff strength to over 150. DealDey as a whole will also be relocating to the Ringier Nigeria head office in Lekki, Lagos where it will integrate with and provide listing support, where relevant, for Ringier Nigeria companies, Pulse.ng and Ringier Digital Marketing (RDM), in addition to continuing with its core platform as well as spin-off companies Lyf and Promohub.