Popular Nigerian online shopping site, Dealdey, has been bought over by the African subsidiary of Swiss media and e-commerce company, Ringier, 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 on Wednesday 23rd Mrach. In 2011, the digital retail startup Dealdey raised at least $1 million from the Swedish investment firm Kinnevik, followed by $5 million in series B financing in 2015.
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. DealDey is one of the most patronized online markets in Nigeria. 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.” Alexa ranks the DealDay at 41 in Nigeria.
Ringier’s Stiegler named the acquisition as part of an expanding Africa strategy to invest fully in four verticals within Africa: classifieds, content, digital marketing, and e-commerce. This deal buys Ringier a platform to tap Africa’s expanding consumer markets through DealDeys’ existing online shopping network. The acquisition also follows the recent global investment in e-commerce company Africa Internet Group, which reached a $1 billion valuation after a $326 million round including Goldman Sachs and AXA Insurance.
Ringier Africa Deals Group, already have a strong foothold in e-commerce across the continent. This includes investments in online shopping sites in Kenya (Rupu), Ghana (Tisu), and South Africa (PriceCheck). Ringier Africa GM Leonard Stiegler views Nigeria, Africa’s 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.”