The Future is Pairing Fintech with Marketplaces According to New Adevinta Report

September 22, 2021
Share this Post: 

The returns of fintech enabled marketplace businesses are far superior to those of marketplaces without fintech capabilities according to a new report from global classifieds giant Adevinta.

The new report, which has been created in partnership with and Speedinvest, also claims that European marketplace businesses are now worth a combined €685 billion and account for 19.5% of all consumer spending (up from 13.6% in 2019).

With an enterprise value to sales ratio of 6.7x, compared to 5.3x and 4.6x for other marketplaces and financial services, respectively, the report says that fintech enabled marketplaces are the future of the industry and that the lines are blurring between marketplaces and financial products.

Jordi Iserte, Investment Director at Adevinta Ventures says:

“The long-term success of marketplaces depends on their ability to adapt and integrate fintech solutions into their platforms. This will allow for a seamless, frictionless experience, and ultimately benefit customers. Fintech-enabled marketplaces are becoming the new norm and we are excited to take an active role in this growing market.” 

Citing a figure of €78 billion invested in online marketplace businesses so far in 2021, the report says that many marketplaces around the world have the capital to invest heavily in either building or acquiring financial products and payment capabilities.

The report uses the examples of iBuyers such as Opendoor and Zillow providing mortgage services and generalist marketplaces such as Jumia and Mercado Libre providing native borrowing and payment solutions.

As for Adevinta itself, since its colossal $9.2 billion deal to acquire eBay Classifieds was rubber-stamped in June, the company has been focussing on moving its marketplace sites into the realm of fintech. Its flagship brand in France LeBonCoin is already offering escrow on car and home purchases and many other Adevinta brands are likely to follow.

The report is available in full here.

September 22, 2021
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Zillow And Opendoor
Zillow and Opendoor Further Extend Their Partnership into 3 New Markets

US giant Zillow and Opendoor have expanded their home sales partnership into three new markets. The new markets are Houston,...

Read More
Ke Holdings Decoration
Chinese Leader KE Holdings Sees Net Losses Widen to $203m in 2022 As It Goes "from high-speed to high quality growth"

Leading Chinese real estate brokerage and portal company KE Holdings (aka Beike) has released a report on its performance for...

Read More
Property Finder Boardroom
PropertyFinder hires Frode Nordseth as VP of Product

Dubai-based marketplace Property Finder has hired Frode Nordseth as its new VP of Product. He announced his new role in...

Read More
Buyrentkenya Nairobi Skyline
"The ceiling for innovation is just infinite at this point" - Interview with BuyRentKenya CEO, Lizzie Costabir

Like the previous two portals we've spoken to in our Africa series, BuyRentKenya has been in the business for 10...

Read More

Editor's Pick