Ecommerce continues its redesign in Nigeria and Africa. Jiji, the Nigeria-operating classified platform, through its principal investor, Digital Spring Ventures, has acquired OLX operations in Ghana, Tanzania, and Uganda. OLX has been looking for exit since it closed full-scale operations in Nigeria, Ghana and Kenya.
Jiji, Nigeria’s classifieds marketplace has reached an agreement with OLX to redirect OLX users in Nigeria to Jiji and to acquire OLX businesses in Ghana, Kenya, Tanzania, and Uganda. The transaction is supported by one of Jiji’s principal investors, Digital Spring Ventures
The deal enables OLX users in these countries to benefit from Jiji’s products and services that have been ranked number one by Nigerian Android users for shopping. Jiji has over six million unique active users, and 50,000 professional sellers listing over one million items in a rapidly growing market of 200m people.
“We extend the warmest welcome to OLX’s users to Jiji and look forward to transforming the online retail experience in Africa as the region continues to transform itself economically and technologically. Jiji aims to provide its customers with the safest, most secure and enjoyable online shopping experience possible,” said Anton Volyansky, CEO and co-founder of Jiji.
In a statement released by Naspers, Sjoerd Nikkelen, the General Manager of OLX in Africa, Middle East and Asia notes: “We are proud of our achievements in Africa, and the sustainable businesses we have built in Nigeria, Ghana, Kenya, Tanzania, and Uganda. 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. We are pleased that Jiji will continue to provide the exceptional quality of products and services that the customers in these countries have come to know and enjoy from OLX.”
Largely, while the real multi-vendor, multi-category ecommerce ecosystems like Konga and Jumia can be challenging due to the huge investment requirement, classified marketplace can be easier to manage with limited investments. So, Jiji may have a win here now that its major competitor has come home.