Dubai-based Dubizzle Group, a technology conglomerate valued at $1 billion, has acquired Egyptian online car marketplace Hatla2ee in a move that underscores its ambition to solidify its dominance in the Middle East and North Africa’s (MENA) classifieds market. The acquisition, for an undisclosed sum, arrives as Dubizzle prepares for a potential initial public offering (IPO) in 2025, seeking a valuation between $500 million and $1 billion.
The deal, announced this week, sees Dubizzle Group integrate its technology and resources into Hatla2ee’s existing platform, which boasts over two million monthly visitors across its website and mobile application. Established in 2016 by Samy Swellam, Hatla2ee has become a prominent player in Egypt’s burgeoning online automotive marketplace, connecting buyers and sellers of new and used vehicles.
For Dubizzle, founded in 2005 and known for its diverse portfolio including the general classifieds platform dubizzle, real estate portal Bayut, and automotive media site Drive Arabia, the acquisition of Hatla2ee represents a strategic expansion within a key regional market. Earlier this year, Dubizzle also acquired Drive Arabia, indicating a clear focus on deepening its vertical expertise within the automotive sector.
“Egypt, with its 114 million population and rapidly evolving automotive market, is a critical geography for Dubizzle Group’s future growth,” stated Imran Ali Khan, Chief Executive of Dubizzle Group. “This acquisition reinforces our commitment to transforming the way Egyptians engage with the car market, building upon our existing strong presence with dubizzle and Bayut in the country.”
Haroon Rashid, CEO of Dubizzle Egypt, echoed this sentiment, highlighting the synergy between the two platforms. “Adding Hatla2ee to our portfolio allows us to offer Egyptian consumers the most comprehensive suite of automotive services, powered by our cutting-edge technology.”
The rationale behind the acquisition points towards several key strategic drivers for Dubizzle. Firstly, it provides immediate access to Hatla2ee’s established user base and market share in Egypt, a country with significant growth potential in online commerce. Secondly, integrating Dubizzle’s technology is expected to enhance the user experience on Hatla2ee, potentially driving further growth and engagement. Finally, the move strengthens Dubizzle’s overall automotive vertical, positioning it as a leader in online automotive classifieds across the MENA region, a compelling narrative for investors as it approaches its planned IPO.
Samy Swellam, CEO of Hatla2ee, expressed optimism about the integration. “Joining forces with Dubizzle Group presents significant opportunities to elevate our platform and deliver an even superior experience for our users in Egypt,” he commented.
Dubizzle’s IPO aspirations are underpinned by a $200 million funding round in 2022 that propelled it to unicorn status. While potential investors including Emirates NBD, Goldman Sachs, HSBC, and Morgan Stanley are likely monitoring the company’s performance and regional expansion, questions remain about the overall financial health and profitability of online classifieds businesses in increasingly competitive digital markets. Furthermore, Dubizzle’s recent divestment from Lamudi Indonesia and the Philippines in late 2023 suggests a strategic refocusing on core markets, potentially driven by IPO preparations and a desire to present a streamlined and regionally dominant business to investors.
The acquisition of the Egyptian car platform Hatla2ee is undoubtedly a significant step in Dubizzle ’s journey towards its IPO. By expanding its footprint in Egypt and solidifying its automotive vertical, Dubizzle is making a clear statement of intent to investors: it is aiming to be the preeminent online classifieds player in the MENA region, and it is aggressively pursuing growth to achieve that ambition. The success of the integration and the subsequent IPO will be closely watched as it unfolds in the coming year.