South African firm buys stake in Kenyan property website

Money Markets

The Buyrentkenya.com website. Mr Jamie Pujara, the CEO, said capital injection by One Africa Media will enable the company to improve and increase users. Photo/Salaton Njau 

By John Gachiri, jgachiri@ke.nationmedia.com

In Summary

• One Africa Media did not disclose how many shares it bought in Buyrentkenya.com and at what price.

One Africa Media, a South African company, has bought a minority stake in property website BuyRentKenya.com.

 

OAM did not disclose how much stake it bought in the firm and at what price. Jamie Pujara, chief executive and founder of Buyrentkenya.com, however said the South African capital injection will enable the company to improve and increase users to the website.

“We’re now in a position to employ more young Kenyans who are passionate about real estate and IT to grow our team here. In addition we want to focus on product development to be able to find new ways and tools to serve the market better,” Mr Pujara told the Business Daily.

BuyRentKenya.com is an online portal that facilitates users to post adverts for land sales, rentals, access to brokers and holidays offers.

The website, which has posted 15,000 properties since it was founded in 2012, gets 160,000 monthly visitors.

“We estimate that over Sh1 billion worth of property transactions is being made through our site each month,” said Mr Pujara.

The new deal will give OAM a complete portfolio of the Kenyan market.

The company invests in online classified sites in Kenya, Nigeria and Ghana and posts adverts for cars, jobs and properties. Buyrentkenya.com joins Checki.co.ke, a car portal, and BrighterMonday.co.ke as OAM investees.

READ: Kenyan online sales firm merges with SA operator

The increase in internet accessibility as rates come down and smartphones become cheaper is attracting foreign companies which are investing in startups that make applications and sites targeting.

Ringier, a Swistzerland-based media company, has invested in Kenya through Ringier Kenya Ltd which runs the rupu.co.ke, pigiame.co.ke, and rupushops.co.ke platforms.

“In future, Ringier intends to achieve growth not only through digital media but in new markets as well. That is why the group now operates no fewer than 15 digital platforms in Kenya, Nigeria and Ghana.

‘‘These pilot initiatives are providing Ringier Africa with a valuable opportunity to explore the potential which the large African market represents,” says Ringier’s 2012 annual report.