After so many months of financial constraints faced by DealDey one of the major player in the e-commerce industry in Nigeria, the company has finally being bought by Ringier Africa.
According to TechCrunch
The African subsidiary of Swiss media and e-commerce company Ringier acquired Nigerian online shopping startup DealDey for an undisclosed amount.
Ringier Africa Deals Group, a joint venture between Swiss Ringier Africa AG and South African Silvertree Internet Holdings Ltd., announced the deal today.
DealDey is one of a handful of players in Nigeria’s very fluid e-commerce space. The digital shopping site aggregates daily online discounts on popular goods and services. It brands itself as Sub-Saharan Africa’s largest online deals platform, naming “over 1 million users, 15,000 active merchants, and 20,000 verified listed businesses.” The digital retail startup previously raised at least $1 million from the Swedish investment firm Kinnevik in 2011.
Co-MDs, Etop Ikpe and Kehinde Oriola took the reins from Sim Shagaya after he left to start Konga in 2012. After his departure, they started an expansion, raised $5 million in series B financing in 2015 from Swedish investment firm, Kinnevik and eventually birthed Lyf and Promohub. No equity percentage was given for either round so it’s not possible to extrapolate the valuation DealDey may have put forward for the Ringier Africa acquisition.
Kehinde Oriola will continue as the CEO of DealDey supported by Damien Bonnabel, the acting CEO of Ringier Africa Deals Group, but Etop Ikpe will move on to other ventures. “The DealDey team is excited about joining forces with the newly formed Ringier Africa Deals Group. It offers great opportunities as DealDey brings a wealth of experience in technology, merchant management and consumer behavior 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.” says the Co-MDs.
Leonard Stiegeler, the General Manager for Ringier Africa said, “Ringier Africa has identified e-commerce 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 e-commerce-experienced Silvertree as a partner and investor, we are on track to significantly increase out interest in the space, with particular focus on service the most 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.”
Everyone’s betting on digital commerce becoming huge in Africa, in the coming years and it’s not hard to see why. Nigerians’ consumer spending is pegged at $400 million per annum, and by 2020, it’s estimated that across the continent, people will spend $1.4 trillion every year.
Ringier Africa GM Leonard Stiegler views Nigeria—Africa most populous nation and largest economy—as an important online shopping space for the new Africa Deals Group. He also thinks the acquisition Ringier can position DealDey to go head to head with Nigeria’s big online retailers, such as Konga and Jumia.
“The country is an important entry market for e-commerce and there are significant players,” he said. “We really believe the deals model that relies more on local merchants and offers both goods and services can differentiate itself from the Amazon models that Jumia and Konga are running.”