JOHANNESBURG – Classifieds business OLX Group has announced an investment of $1.16 billion, or approximately R15.79 billion, to acquire a further 29.1 percent stake in Avito, the leading online general classifieds and property platform in Russia.
This raises OLX's stake increases from 70.4 percent to 99.6 percent on a fully diluted basis. The remaining shares are held by existing management.
Naspers initially invested in Avito in 2013. Over the last five years, Avito has established leading positions in five key categories, namely goods, autos, real estate, jobs and services.
With 10.3 million daily unique visitors, Avito now attracts a large portion of the Russian internet population every day.
In the first quarter of the 2019 financial year, Avito revenue increased by 31 percent to U.S.$162 million, driven by enhanced product features, strong vertical traction and working closely with professional advertisers. The business continues to generate robust profit margins.
The transaction closed on January 25 and was funded by Naspers’s existing cash resources.