UAE - Mubasher: The Dubai-based Emerging Markets Property Group (EMPG) and OLX Group have announced the merger of their businesses in the MENA and South Asia regions, Emirates News Agency (WAM) reported.
With the merger, the owners of Bayut and Dubizzle, which were launched at the Dubai Internet City, will form a AED 3.6 billion ($1 billion) unicorn company in Dubai.
Hence, OLX has become EMPG's largest single shareholder owning 39% of the later's shares.
In the UAE, both Bayut and Dubizzle will be operated by EMPG, which will also own OLX business in Egypt, Lebanon, Pakistan, and several GCC countries.
As part of the agreement, existing EMPG shareholders and OLX group will lead a AED 550 million (US$150 million) investment round.
The managing director of Dubai Internet City, Ammar Al Malik, said: "Our infrastructure and business-friendly environment have created an enabling ecosystem for entrepreneurs to scale up their ventures in a community that is home to everyone from startups to Fortune 500 companies."
Meanwhile, the head of EMPG in MENA, Haider Ali Khan, noted: "At the same time, we will be making significant technology investments to provide more value to all users of property, automotive and other segments of the Dubizzle and OLX platforms."
The merger came less than a year and a half after Uber acquired Careem, the latest Dubai startup, with $3.1 billion, reflecting Dubai's position as a global hub for investment and innovation.