OLX Group has announced a merger with Emerging Markets Property Group (EMPG) which runs property sites in Pakistan, Egypt, Lebanon, and the UAE.
OLX Group, a Prosus’s global classifieds business, alongside existing EMPG shareholders, will also invest $150 million into the group, which values EMPG at US $1 billion after the transaction. After the deal, OLX Group will own 39% of the company.
According to Martin Scheepbouwer, CEO of OLX Group, “I’m proud of what we have built in these four markets. Our brands are household names, and currently help tens of millions of people to exchange goods and services every month. As EMPG’s largest shareholder, we’ll have a front seat to explore how we can scale their services model further – taking our ambition to shape the future of classifieds into its next stage.”
The property group will use the new capital to develop a range of new services, create a more seamless user experience, enhance data transparency, and deepen market intelligence for both consumers and business users. In Egypt and Lebanon, EMPG will operate the existing OLX platforms while in Pakistan and the UAE, both groups’ platforms will be operated by EMPG and will continue to operate through their well-known local brands.
The aggregated value of properties sold in these markets is estimated at US $90 billion, providing a commission pool for real estate agencies of over US $2 billion per annum. This presents a great opportunity for EMPG to enhance their real estate services in these markets.
“EMPG has grown at a tremendous pace since its inception,” said CEO Imran Ali Khan. “Our unique ability to scale using our proprietary tech has aided and enabled this expansion. This deal puts us one step further in our journey towards providing solutions in multiple markets to over a billion consumers around the world, expanding our classifieds offering significantly.”
EMPG is currently present in the GCC region with Bayut, Pakistan with Zameen, Bangladesh with Bproperty, Morocco and Tunisia with Mubawab, and Thailand with Kaidee. After this deal, besides expanding to Egypt and Lebanon, EMPG will also operate OLX’s platforms in Pakistan, Saudi Arabia, Bahrain, Kuwait, Qatar and Oman, and the dubizzle platform in the UAE.
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