The Australian online classifieds operator Digital Classifieds Group (DCG) has acquired the Lamudi real estate verticals in the Philippines and Indonesia from Dubizzle Group.
With the acquisition, DCG now operates online classifieds sites across seven markets including Laos, Cambodia and Fiji.
DCG Group CEO Mathew Care reflected on the quality of the Lamudi business.
“Lamudi, under the stewardship of the dubizzle Group and the management team, have created dominant classifieds and transactional property marketplaces in two of Asia’s most exciting markets: Indonesia and the Philippines. Our vision is to build a market leading classifieds group in South East Asia, a region of incredible opportunities, and this acquisition is a catalyst to delivering this vision. I am incredibly excited to enter these markets and welcome the Lamudi team to the DCG family.”
Lamudi is the second real estate portal asset that DCG has acquired from Dubizzle Group (formerly EMPG) this year with the Dubai-based group having sold the leading Bangladeshi portal Bproperty to DCG in January. Dubizzle Group appears to be divesting from non-core assets ahead of a rumoured IPO.
Having been founded in 2013, Lamudi was acquired by Dubizzle Group (formerly EMPG) in 2020 with a subsequent injection of capital into the business following in 2021. Lamudi effectively holds the number two position in the Indonesian market behind 99.co while in the Philippines it is the dominant real estate vertical.
Earlier this year Dubizzle Group announced layoffs at the Indonesian branch of Lamudi citing an "optimization drive" while rival Indonesian portal operator PropertyGuru decided to pull out of the market.
In a conversation with DCG management, Online Marketplaces learned that Lamudi would be a core company focus and that the business would benefit from management's expertise and experience with similar businesses.
While declining to go into specifics of the Lamudi deal, DCG did confirm a report in the Australian Financial Review from earlier this week that it may be looking to float on the ASX following its latest acquisition.
"As an owner-operator, we are confident we can drive robust returns from our dominant market positions for current and future investors. A listing on the ASX or another exchange will give the company access to capital to fund further growth opportunities via M&A, which we believe is vital in creating Southeast Asia's largest property marketplace."
DCG is set to benefit from the experience of Fusion4 Ventures, the investment company that led a recent investment round into the business. Fusion4 Partner Joe Hanna (former CEO of The PropTech Group) will be joining the board while Michael Fiorenza (former CFO of The PropTech Group) will be joining DCG as a CFO.
Disclosure: Online Marketplaces' Chairman, Simon Baker is an investor in and advisor to Digital Classifieds Group.