OLX was founded in 2006 and has been in India for a decade now. Its progress in India has been outstanding as it is now present in over 4000 cities. There are over 40 million monthly users on OLX. There is almost anything that you can sell on OLX while there is almost anything you can buy on OLX. It is now trying to expand its second-hand car business. This segment in India is majorly dominated by offline retailers and OLX is one of the latest entry into this side of the business. It has reaped a lot of income recently when it posted around $24.45 million of income with 93.6% increase in FY18. It has over 77% market share in the used car segments. It is owned by a South African giant Naspers.
In spite of owning that much share in the used cars segment, it is now trying to enter another untapped market. OLX recently started its jobs vertical. Its jobs ventures needed a lot of research and technical advancements, instead of investing in all that it has decided to buy a company which was already in this sector. Aasanjobs a Mumbai-based company which is basically an online recruitment marketplace was acquired by OLX. The fee was kept under the envelope as OLX’s intention to own the blue and grey collar job market became crystal clear.
Aasaanjobs is a company which mostly works on end-to-end recruitment which connects employers, consultants and job seekers. The company had recently acquired mHire which was based in Noida. Dinesh Goel, Gaurav Toshniwal, Aditya Gupta, Siddhartha Das, and Kunal Jadhav founded Aasaanjobs in 2013. Goel, one of the founders felt that to achieve their aims in the future, OLX seemed to be a great umbrella to have. OLX has almost 4000 cities in their kitty and that’s Aasaanjobs wanted to enter more cities; a match made in heaven.
That said, blue and grey collar jobs in India are on a high. Google and KPMG had recently produced a joint report in which they said that the online jobs market was going to increase twice from now in 2020. It was going to increase by 15-20% in 2019. OLX has only one competitor in QuikrJobs which was founded in 2016 by Quikr.
There are around 70 million blue and grey collar jobs in India which are available almost every year. The workforce also stands at 60 million workers annually and there is a huge gap. There is also a massive opportunity for growth in the sector. So this acquisition is all about growth into the jobs sector for OLX and only time will tell how it acts and grows in the near future.
– Unmesh Phule