In a surprising move, two Tanzanian rival companies have decided to put their competition differences aside and team up to win more market shares. Classified platforms, ZoomTanzania and Kupatana, announced that they are merging to form a new online marketplace.
The two companies are among leading marketplaces in Tanzania. The decision means that their marketplaces will henceforth become one in aim to boost growth as competition grows intense in the market.
The Tanzanian marketplace is made up of competitors such as Kaymu, kivuko, jumia, inazuwa and shopping, who are each fighting for the market’s soul. ZoomTanzania and Kupatana believe the merger will give them a competitive edge over the rest.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
ZoomTanzania is owned by Roam while Kupatana is backed by Frontier Digital Ventures.
Afrieuro Digital Ventures, a Tanzanian private limited company, obtained the exclusive rights to market and operate the two classified sites last year.
“This is an amazing opportunity for us, but particularly for the Tanzanian internet users since we will be able to further develop the already strong online marketplace presence and provide even more sales opportunities and a better user experience across all categories,” Makusaro Tesha, General Manager of Afrieuro Digital Ventures said.
Under the merger deal, Kupatana.com will be kept as the brand name in the future but for now both websites will be kept as they are. This is due to the high brand awareness rate in Tanzania and mobile adoption of users. In the beginning of next year the plan is to launch a new website that will merge both brands.
“From a technical standpoint, the new platform will be a new version that will combine the best of the two platforms, but also bring new and exciting features so that we can provide a safe, fast and user-friendly experience to buy and sell online,” says Makusaro Tesha.
Tanzania, with a population of 60 million people, has an agricultural-based economy, but is working to boost the tourism sector. The East African country’s economy is expected to grow from the current 5% to 8% in the next five years. This means, the second-largest economy in East Africa, will have larger growth potential for its marketplace industry.
Merger has over the years proved effective in helping companies in different industries to stay afloat amidst economic crunch or fierce competition. ZoomTanzania and Kupatana’s merger is likely going to set a precedent in the Tanzanian marketplace industry.