EMPG acquires the real estate business of OLX Indonesia
Emerging Markets Property Group (EMPG), the market operator specializing in real estate, has acquired the real estate assets of OLX Indonesia for an undisclosed amount through its local real estate arm Lamudi. The user experience and brand of the OLX real estate vertical will remain unchanged.
OLX’s real estate vertical is already a major competitor to Top-3 sites operated by 99.co and Property Guru. The company said the deal would make Lamudi the clear market leader in the country.
“We couldn’t be more excited about our path forward as the undisputed market leader in Indonesia, shaping the future of real estate transactions through innovation and technology,” said Lamudi CEO Kian Moini. , in a press release.
Lamudi operates as a classified hybrid brokerage business and generates the majority of its revenue by directly participating in the real estate transaction. More recently, OLX has also completed transactions in real estate and automotive.
Lamudi was founded in 2013 by the German company Rocket Internet. It had operations in Southeast Asia, Latin America and the Middle East. In 2020, its global operations were acquired by EMPG.
EMPG is based in Dubai and operates major real estate verticals Bayut in the Middle East and Zameen in Pakistan. Its largest shareholder is Prosus, the parent company of OLX Group, which holds a 39% stake in EMPG following a US$150 million investment round in 2020.
This transaction also resulted in a transfer of OLX Group’s operations in the Middle East, including Dubizzle, and Pakistan. OLX Indonesia, however, was not transferred to EMPG under this agreement.
Despite a number of property verticals operating in Indonesia, the market is still at a relatively early stage and considered up for grabs. REA Group recently left the country after selling its assets to 99.co. The two companies previously entered into a joint venture to compete with PropertyGuru. Eventually, REA Group opted to back Property Guru, taking an 18% stake in Property Guru and transferring its Malaysian and Thai assets.
With the Lamudi-OLX combination, EMPG is clearly seeking to claim market leadership.