OLX Group, a classified listings subsidiary of e-commerce and media group Naspers, paid $1.16bn on Friday to increase its stake in Russia-based online classifieds and property listings platform Avito to 99.6%.
Naspers had initially provided $50m in funding for Avito in 2013 and subsequently invested $1.2bn two years later in order to hike its stake from 17.4% to 67.9%. The latest investment involved it growing its share from 70.4% and values the company at $3.85bn.
Avito maintains an online classified listings platform with 10.3 million daily visitors covering property, consumer goods, vehicles, services and jobs. OLX meanwhile runs 17 brands covering five continents, with a total of 350 million monthly active users.
Naspers chief executive Bob van Dijk said: “Avito is the leading online classifieds player in Russia and our decision to increase our stake reflects our belief in the long-term prospects of this great business and the Russian internet market.
“This investment further strengthens our global position in online classifieds, a core focus for Naspers alongside online food delivery and fintech.”
The 2013 investment involved Naspers also merging Avito with two of its existing Russia-based online properties to form a company valued at $570m in which it held an 18.6% share.
Kinnevik, Vostok New Ventures and Northzone had supplied a combined $26m in funding for Avito before venture capital firm Accel invested $75m in the company in 2012.
Kinnevik and Vostok added a further $30.6m in funding in 2014. The former exited fully through the 2015 deal while Vostok held on to a 13.3% stake that has now been sold, with the remaining 0.4% of Avito held by members of senior management.
