Frontier Digital Ventures Limited (“Frontier”, ASX: FDV) has completed multiple transactions to significantly upgrade its portfolio of market leading online classifieds businesses in Frontier markets.
Frontier’s CEO and Founder, Shaun Di Gregorio said: “This transaction was a rare opportunity in the online classifieds space, and we are pleased that Jumia, a major African classifieds investor, reached out to Frontier with a strong desire to acquire Afribaba and complete this transaction.”
“The ultimate result for Frontier shareholders is that we have exited Afribaba and created 3 new market leaders in property verticals in Ghana, Nigeria and Angola. Our businesses are now in a significantly improved position to commence rapid monetisation.”
“The transaction also demonstrates the strength of our entrepreneur-led online classifieds model, which provides a significant advantage over competitors which are fully owned and operated remotely by major online classifieds groups, who lack the requisite local expertise and network.”
Jumia assets acquired
Under the agreement, Frontier will acquire Jumia’s 100% interests in Jumia House Ghana, Jumia House Nigeria and Jumia House Angola (“Jumia Assets”). The Jumia Assets have strong listings, sessions and advertiser customer bases and retain strong competitive positions in each of their three respective markets.
Rationalisation of Afribaba
Frontier has agreed to sell Afribaba, a classified horizontal platform in West Africa, for an undisclosed amount to Jumia in return for the Jumia Assets. The decision was made given Jumia’s significant interest in acquiring Afribaba and from Frontier’s perspective has facilitated the creation of three market leaders in Ghana, Nigeria and Angola.
Frontier has completed a number of successive transactions with Jumia, meQasa, ToLet, AngoCasa and Afribaba to ultimately vend the Jumia Assets into its existing investment.
Under the agreement, the Jumia Assets will commence redirecting all traffic through to meQasa, ToLet and AngoCasa. All existing listings will also be migrated on to Frontier’s platforms. There will be a comprehensive customer migration process over the next two months where existing dealers and agents will be offered new contracts or a roll forward of their existing contracts with Jumia Assets.
It is expected that the integration process will complete within a 6 month timeline.
The transaction with Jumia has significantly upgraded Frontier’s overall portfolio of market leading online classified investments. Frontier now has 12 investments at the monetisation stage (up from 10), and has reduced its investments in pre-monetisation stage businesses. The transaction is a clear demonstration of Frontier’s portfolio optimisation process in action.
About Frontier Digital Ventures Limited
Frontier Digital Ventures is a leading operator of online classifieds businesses in underdeveloped, emerging countries or regions. With a track record of building and supporting market leading online businesses, Frontier Digital Ventures are experts in the online classifieds space with a particular focus on property and automotive verticals and general classifieds websites. Its portfolio currently consists of 17 leading companies, operating businesses across 20 markets. With the extensive support offered to the local operating companies, coupled with their own energy and work ethic, Frontier Digital Ventures is bringing outstanding companies of global significance to their full potential and setting a new global standard of excellence in the field.