For an undisclosed amount, Ringier and Silvertree are reported to have acquired DealDey, an online shopping and daily deals site.
According to people with the knowledge of the matter, they will be using the opportunity to enter the eCommerce market. In 2011, DealDey was launched in Nigeria and perhaps mimicking the Groupon.com, the largest deals site in the United States and Europe; DealDey has since then started its own online shopping services.
DealDey faced series of financial challenges that led to a mass lay offs of hundreds of its staff early last year. Sim Shagaya, @SimShagaya, the current Chairman of Konga, started DealDey in 2011, Sim left to start Konga in 2012.
Ringier started operations in Nigeria with Pulse.ng as its flagship brand focusing on news and entertainment content targeted at youths. Silvertree has expertise in eCommerce, Pulse has competence in classified advertising; they would be using the synergy to compete in a very competitive eCommerce market. Also, the coming of Ringier-Silvertree marks the final divorce of DealDey from its Konga background and investors.
With the continuous rise in Internet access across cities and sub-urban areas; Nigeria’s eCommerce market has become the focus of mostly foreign venture capitalists. Konga, Jumia, Yudala, PayPorte and many others are locking horns in the category to gain from the opportunity.
However, the continuous depreciation of the Naira, is taking a huge toll on eCommerce companies selling mostly foreign-made products, gadgets and fashion wares. We look forward to see how Ringier-Silvertree will navigate DealDey to financial buoyancy in this trying times.
