SA real estate firm acquires traveltech startup for $1.5m
South African real estate investment company Neighbourgood, known for its 1,000-plus work and co-living spaces in Cape Town and San Francisco, has acquired traveltech startup Local Knowledge in a $1.5 million cash and equity deal.
Established in 2020 with a business presence in both Cape Town and San Francisco, Neighbourgood specializes in providing co-living and co-working spaces tailored for digital nomads and tourists. On the other hand, Local Knowledge, as a digital platform, offers curated recommendations for activities and tours in Cape Town, making it a valuable addition to Neighbourgood's expanding ecosystem.
This strategic move plays a pivotal role in Neighbourgood's upcoming launch of a mobile app designed to offer users recommendations for activities and tours. Murray Clark, the founder of Neighbourgood, emphasized the company's initial focus on constructing physical locations but revealed a broader strategy to enhance the technology that enriches the living and working experience within these spaces.
Key Takeaways
Mergers and Acquisitions (M&As) are increasingly becoming a prominent trend in the African tech ecosystem, as indicated by the Dealmakers Africa report for 2022. The report highlights a significant surge in M&A activity across the continent, with 687 local deals announced and a total value of $17.53 billion. The fragmented nature of the African tech market is identified as a key driver behind the surge in M&A activity. The presence of numerous small and medium-sized companies operating across different regions and sectors creates an environment where consolidation through M&As can lead to the formation of larger, more diversified entities. This consolidation positions these entities to compete more effectively on a global scale and attract increased investment.
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