“The new funds raised will be used to improve the platform’s technology offering to both property seekers as well as that used by listing agents. The rest of the funds will be channelled into improved marketing efforts and aggressive expansion across Nigeria over the next 12-18 months,” said Fikayo Ogundipe, Chief Executive Officer of ToLet.com.ng.
Despite the recession in Nigeria, there seems to hope for the real estate sector. According to the GDP figures for the second quarter of 2016, real estate services grew by 2.12 percent. The contribution of the sector to nominal GDP in the Second Quarter of 2016 was 8.64 percent.
From inception till date, ToLet.com.ng has facilitated over 8 million dollars in transactions value and currently boasts of roughly 20,000 listings online from a growing number of just over 3,500 real-estate agents.
Unlike their competitors who use subscription models, they collect only commission fee, a model locally operated among Nigerian real estate agents. This act makes their service a performance-based.
Frontier Digital Ventures is a Malaysia-based investor in leading classifieds companies in emerging markets. Last year it invested $500,000 in Ghanaian real estate classifieds start-up MeQasa and has made several investments across frontier markets including Panama’s general classifieds Encuentra24.com and Pakistan-based property website Zameen.
“We are super excited to be making this investment into ToLet.com.ng, and we look forward to being part of helping fuel their next stage of accelerated growth. We also look forward to the consolidation of their position as the number one property classifieds portal in Nigeria,” said Shaun Di Gregorio founder and CEO of Frontier Digital Ventures.
What you didn’t know about ToLet.com.ng
- ToLet.com.ng was founded in 2012 as Estanode.com.
- ToLet is a website that helps users find property for sale 0r rent in different parts of Lagos.
- Users can find cheap apartments, luxury apartments, serviced apartment and office spaces.
- It was built with a collective personal savings of $400 from four Obafemi Awolowo University fresh graduates –Fikayo Ogundipe, Sulaiman Balogun, Dapo Eludire and Seyi Ayeni.
- In 2013, it received a $230,000 seed fund from Jason Njoku’s tech company accelerator Spark.ng and then rebranded to ToLet.com.ng.
- Since its rebranding in 2013, the real estate classifieds start-up has quietly grown into one of the leading and recognisable online property portals in Nigeria.