Jiji, a leading classified marketplace operator based in Nigeria, has acquired one of the country’s leading automotive trade platforms in Cars45.
Co-founder of Jiji, Vladimir Mnogoletniy, told TechCrunch that the acquisition is a means for the company to expand beyond its classifieds business.
He also explained that vehicle listings are the second most popular category on Jiji’s marketplace, behind only real estate. The platform’s total listing is worth over $10 billion, with real estate ($7 billion) and vehicles ($3 billion) making up the bulk of it.
“In terms of classifieds, we’re looking at opportunities,” Mnogoletniy says, further elucidating on how Jiji seeks to continue acquiring companies with “adjacent” business models, such as Cars45.
“[Jiji is] already a leader in Africa, so I think there’s very limited space for whom to acquire. However, we’re primarily interested in deals like Cars45, where we bring our leadership positions from classifieds and acquire very close business models that give us exposure to the transactional marketplace. So for us, a major interest will be to acquire adjacent business models.”
“We have leading positions in all markets we’re present in and are definitely the classifieds leader in the region. Also, we are probably the largest e-commerce company in Africa by GMV,” he continued.
Cars45 Expands Jiji’s Marketplace Capabilities
TechCabal explains that this latest acquisition will enable Cars45 to grow the vehicle category on Jiji.
Cars45 is reportedly merging its operations in Nigeria, Ghana and Kenya in new efforts to increase efficiency. The acquisition is another notch in Jiji’s mantle, allowing them to further consolidate their position as a classifieds leader in Africa.
Cars45, which was previously owned by OLX Group, will also allow customers of Jiji to buy and sell cars without relying on other users. Jiji has recently been haunted by a series of trust and safety issues, and Cars45’s own tried and trusted marketplace experience will mitigate these concerns.
Jiji will also be leveraging Cars45’s inspection centres where cars are inspected for more than 200 parameters. This will also users to inspect cars they are buying through Cars45’s professional inspection model, where previously users would have to inspect cars they were buying themselves. Cars45’s inspection and transaction model will ensure quality checks and detailed reports on a car’s condition with various databases.