Frontier markets-focused classifieds platform receives $40m
Saltside Technologies, which operates online classifieds platforms in Bangladesh, Sri Lanka and Ghana, has received a $40 million round of funding led by Chinese investor Hillhouse Capital.
Brummer & Partners and existing shareholder Investment AB Kinnevik also participated. The latter group - an emerging markets specialist from Sweden - seeded Saltside in Gothenburg four years ago and is said to have put in an initial $25 million. Its contribution to the latest round is $5 million.
Saltside, which was set up by Nils Hammar and James Peck, both early employees at Skype, has a remit to build leading online marketplaces for underserved areas. It is the leading player in Bangladesh with Bikroy, in Sri Lanka with Ikman, and in Ghana with Tonaton. The company also operates Dekho in Pakistan. Saltside is headquartered in Dubai and employs more than 200 people across five countries.
The new capital will be used to strengthen the company's position in existing markets and expand into new frontier markets. Kinnevik said in a statement that it retains majority ownership of Saltside with a stake of 61%; the balance is held by management and the new investors.
"Saltside's target markets are set to benefit from rapidly increasing internet penetration. The company is best positioned to benefit from this trend with clear leadership positions in each of its three core countries. The focus on localized branding and strong vertical management has created platforms with great engagement so Hillhouse is excited to participate in the next phase of this journey," said David Rhee a partner at Hillhouse.
Founded by Lei Zhanng in 2005, Hillhouse invests globally but with a particular focus on Asia, targeting the consumer, internet, media and healthcare sectors. Last week it was reported the firm had raised a $2 billion private equity fund.
Brummer can already claim a presence in Bangladesh, having raised $88 million for the first-ever PE fund dedicated to the country in 2009. The GP is now in the process of raising a successor vehicle, which has a target of $100 million and a hard cap of $150 million.
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