Classifieds specialist Adevinta ASA has signed an agreement for the sale of its subsidiary Gumtree South Africa to venture capital firm Impresa Capital, the majority shareholder of Ignition Group.
Ignition Group is one of Africa’s largest investment firms, specialising in the technology, media, telecommunications and financial services industries.
According to a statement, the transaction is subject to regulatory approval.
Gumtree SA was launched in 2004, and has grown to become one of SA’s 10 largest local marketplaces, according to the company.
The online classifieds platform helps millions of users and customers to buy and sell second-hand goods daily and connects job-seekers to employment opportunities.
“As part of Adevinta’s strategic review process, we continue to focus our investment capacity on five European core markets and we have made every effort to find the ideal buyer, not only to continue to invest in Gumtree SA, but to ensure the continuity of the operations for the employees involved,” says Rolv Erik Ryssdal, CEO of Adevinta.
“We are particularly pleased that Impresa Capital, a successful entrepreneurial-based business with various technology-driven investments, will be able to continue developing and growing the business, while also identifying interesting long-term synergy potential. Adevinta will continue to support Gumtree SA and its employees throughout this transition to ensure continuity for the business and its users.”
European multinational firm Adevinta ASA runs various online marketplaces across France, Germany, Italy, Netherlands, Spain and SA.
In 2020, Gumtree SA and MFC, Nedbank’s vehicle finance division, launched a digital process to verify cars sold online, which offers consumers additional protection when buying or selling vehicles.
In 2018, the company faced stiff competition when social media giant Facebook introduced an online classifieds service on its site – Facebook Marketplace. Later on, other social media platforms, such as Instagram, TikTok and Twitter, also introduced a similar service.
This, as the online shopping boom led to a huge uptake in the social commerce (social media buying) trend in SA and across the globe.
Sean Bergsma, Ignition Group CEO, says: “We are delighted to bring Gumtree SA back to its home roots in South Africa, and to expand on the Gumtree platform with new products and services that will benefit Gumtree customers, and both consumers and businesses alike.
“The accelerated growth of Gumtree on the African continent will see new jobs being created and the technology developed further using local South African talent. Exciting times ahead for all stakeholders.”
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