Silvertree is exiting its equity stake in DealDey, Nigeria’s premier deals site, through a management buyout.
Over the past two years, Silvertree has supported DealDey’s management as they have transitioned DealDey from early stage insurgent to a sustainable leader in Nigeria’s online market. DealDey’s focus on margin and operational efficiency has seen the company focus on categories such as urban services, events and training courses, as well as move to a fully-outsourced logistics partner model for the physical goods marketplace. This has left the company in a far stronger financial position, despite a sometimes challenging few years for the Nigerian ecommerce industry.
Through the management buyout, DealDey’s team gains flexibility to work more closely with local players, especially those outside the traditional Internet startup space. Furthermore, DealDey intends to innovate in line with the vision to help connect local Nigerian business with consumers, and vice-versa, throw a deeper focus on local listings and information.
Silvertree will continue to invest into and support emerging African tech and consumer businesses, with a particular focus on players with clear synergy opportunities with the existing Silvertree portfolio.
Silvertree Managing Director Paul Cook said, “We’re proud of what we have accomplished together at DealDey, and it has been a pleasure working together with Kenny and the management team over the last few years. Now, we are excited to be supporting the management of DealDey in this transaction, enabling them to take further entrepreneurial ownership of the company, in line with our focus on supporting Africa’s leading entrepreneurs as they build iconic consumer brands.”
DealDey Managing Director Kenny Oriola said, “Silvertree has been a fantastic partner over the last few years, and while we will miss their support, we are excited about the new direction for DealDey, and the further value we’ll bring to Nigeria’s emerging consumers.”