In what is likely the most interesting acquisition deal in the history of Nigerian internet startups, online property classifieds platform, ToLet.com.ng just recently announced its acquisition of Jumia House for an undisclosed amount.
According to the press release sent to Techpoint, the acquisition, which is in conjunction with their existing investor — Frontier Digital Ventures — will merge the two platforms over the coming months, under the new name of PropertyPro.ng.
Why is this interesting? It is barely a year ago since ToLet.com.ng raised just over a million dollars in its Series A funding round. Jumia House on the other hand, is a subsidiary of a billion-dollar company.
This raises the question of how ToLet was able to finance such an acquisition. According to TechCrunch, co-founder Sulaiman Balogun said: “The $1.2 million in funding we announced last year is the only round we’ve disclosed. We’ve raised enough capital to run through this deal and really fund the business and grow.”
With over 60,000 listings on the platform, ToLet will be adding Jumia House’s 22,000 listings, staff and assets to its portfolio.
The brainchild of Seyi Ayeni, Sulaiman Balogun, Fikayo Ogundipe and Dapo Eludire, ToLet was founded in 2013 after Sulaiman and Fikayo had conceived the idea as undergraduates in 2011.