Durban-based Ignition Group Acquires Online Classified Platform, Gumtree
For the first time in 18 years, Gumtree South Africa will be owned by South Africans. Previously, the American worldwide e-commerce company eBay and then Adevinta held control of the company.
The acquisition firm Impresa Capital is the principal shareholder of the Durban-based Ignition Group of enterprises, which was founded in 2002 by brothers Sean and Donovan Bergsma.
According to Sean Bergsma, cofounder and CEO of Ignition Group, the acquisition solidifies his firm’s investment strategy in the media and technology industries. The CEO also noted that acquiring Gumtree is the greatest “next step” for the company to take in order to expand into novel and fascinating markets.
“As a proudly African-rooted business, this acquisition cements our strategy of investments in the technology and media sectors and provides our portfolio of businesses with a solid platform for growth. We plan to enable Gumtree customers to experience new ways of buying and selling through partnerships with the Ignition ecosystem of services.
“The acquisition of Gumtree, in his opinion, is the best “next step” in moving the company in new and interesting areas and creating a variety of opportunities for Gumtree users through the platform.
“The accelerated growth of Gumtree on the African continent will see new jobs being created, and with the technology developed further using local South African talent, it means exciting times ahead for all stakeholders,” said Bergsma.
About Gumtree
Michael Pennington and Simon Crookall launched Adevinta in 2000. The online classified ads and community site serves customers in the United Kingdom, Ireland, Poland, Australia, New Zealand, and South Africa.
Gumtree primarily serves as a platform for people to display their free ads. For those who want their advertisements to appear more prominently, there is a paid marketing option. Any user can pay a charge to increase the exposure of their advertisements in the listings.
Gumtree has expanded its customer base over time by offering packages of classified advertising to businesses and companies wishing to list multiple properties and job openings.
They provided vehicle dealers with bulk classified listings in 2013. Gumtree is an excellent site to find what you’re looking for and find a buyer for your items, homes, or cars with over 2 million adverts placed there at any given moment.
Gumtree changed its name in the first quarter of 2016 and launched on several apps. With more than 450,000 followers on Facebook and 35,000 followers on Twitter, it has a strong social media presence. It uses social media to disseminate information and updates about the business as well as to announce contests and promotions that stimulate new listings and draw visitors to the website.
What Gumtree’s Service Offer Businesses
Gumtree figures show that businesses and entrepreneurs lose out on over £6.5 billion in savings as a result of poor or absent negotiation abilities, particularly when making purchases online.
It is a cost-effective method for companies to advertise their goods and services while reaching a worldwide clientele. Businesses now have the added benefit of being able to connect with millions of users every day.
Any business can benefit from using Gumtree as a tool. This is a result of the growing popularity of online classifieds sites, particularly for small and medium-sized businesses, as a way to source clients, market their products, and locate qualified candidates to fill open positions. They provide businesses with an inexpensive platform for advertising.
Gumtree has made it even simpler for individuals to acquire services and goods as internet trading has grown. This is why having a good online presence is crucial for every company. Few companies can afford to execute comprehensive digital campaigns due to the high cost of advertising, which is where Gumtree comes in.