"This merger of EMPG and OLX will allow us to better serve our customers," said Haider Ali Khan, head of EMPG - MENA.
Dubai - EMPG noted that the merger will result in a range of new services, creating a more seamless user experience, enhancing data transparency, and deepening market intelligence for both consumers and business users.
Published: Tue 28 Apr 2020, 5:41 PM
Updated: Wed 29 Apr 2020, 1:09 PM
Emerging Markets Property Group (EMPG) and OLX Group have announced a merger of their businesses across the UAE, Pakistan, Egypt, and Lebanon, which will bring more value to their customers in the property and automotive segments.
The agreement includes a $150 million investment round, led by OLX Group along with existing EMPG shareholders, which values EMPG at $1 billion after the transaction. As part of the deal, OLX Group will contribute its operations in the four countries into EMPG and will become EMPG’s largest single shareholder, owning 39 per cent of the company.
“This deal puts us one step further in our journey towards providing solutions in multiple markets to over a billion consumers around the world, expanding our classifieds offering significantly,” said Imran Ali Khan, CEO and co-founder of EMPG.
EMPG is currently present in the GCC region with Bayut; in Pakistan with Zameen; in Bangladesh with Bproperty; in Morocco and Tunisia with Mubawab; and in Thailand with Kaidee. After this deal, besides expanding to Egypt and Lebanon, EMPG will also operate OLX's platforms in Pakistan, Saudi Arabia, Bahrain, Kuwait, Qatar, and Oman, and the dubizzle platform in the UAE.
Haider Ali Khan, head of EMPG - MENA region, said that Bayut and EMPG are very excited about the future of the UAE real estate industry.
“This merger of EMPG and OLX will allow us to better serve our customers, given that both operate brands with a strong following and will allow us to leverage existing tech and data to paint a more accurate picture of the state of affairs in the real estate industry across the region,” he said. “At the same time, we will be making significant technology investments to provide more value to all users of property, automotive and other segments of the dubizzle and OLX platforms.”
EMPG noted that the merger will result in a range of new services, creating a more seamless user experience, enhancing data transparency, and deepening market intelligence for both consumers and business users. In Pakistan and the UAE, both groups’ platforms will be operated by EMPG and will continue to operate through their local brands. In Egypt and Lebanon, EMPG will operate the existing OLX platforms, rolling out new services for the real estate community, as well as offering consumers a superior experience across all categories.
The aggregated value of properties sold in these markets is estimated at $90 billion, providing a commission pool for real estate agencies of over $2 billion per annum.
Martin Scheepbouwer, CEO of OLX Group, said: “Our brands are household names, and currently help tens of millions of people to exchange goods and services every month. The next phase is an exciting one, with EMPG’s real estate industry expertise helping deepen the customer experience. As EMPG’s largest shareholder, we'll have a front seat to explore how we can scale their services model further - taking our ambition to shape the future of classifieds into its next stage.”
rohma@khaleejtimes.com
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