Naspers’ OLX is still taking bullish moves in some markets. OLX has just announced that it is merging with Properati, a rival classifieds marketplace focusing on real estate in Argentina.
OLX said it has entered into an agreement to join forces with Properati in Latin America.
The deal, expected to be closed in the next 30 days, strengthens OLX presence in the Latin American real estate market by expanding its portfolio with a product that delivers world-class UX design and a team with over 10 years’ experience in the category.
The agreement also includes full ownership of Credirati, a platform that streamlines the mortgage loan acquisition process, contributing to OLX’s strategy to expand its offering to its over 2,500 professional clients across the region.
“For us, this merge means the incorporation of a team with excellent technical skills and it is a huge step towards our consolidation as market leaders in the online real estate market, not only in Argentina but throughout Latin America. Our growth opportunity in the real estate market is huge if we consider that, in 2016, the region had over 68,000 professional sellers and its total revenue from ads exceeded 43 million dollars. A platform like Properati, with its many business units, allows us to deliver a much more sophisticated product to our users,” stated Ariel Meyer, Head of Latin America at OLX, who led the negotiations.
“We’re very happy to join forces and excited to bring with our expertise and knowledge of the real estate market to OLX. This investment will allow us to take Properati to the next level, and reach many more users from OLX, benefiting the entire sector in Latin America”, says Gabriel Gruber, co-founder and co-CEO of Properati, who will continue to lead the business together with Matín Sarsale, co-founder and current CTO, at OLX.
The agreement is valid for Argentina, where Properati has already established a renowned position, and for 13 other Latin American countries, enabling the company to reach a broader regional community that is interested in this type of solution.
The deal excludes Brazil, Chile and Mexico, where the brand will continue to operate independently.