Global asset manager spots juicy travel sector investment in Nigeria

Source: Biznews, 20/12/2018

Bloomberg has reported that foreign direct investment in Nigeria
fell 29% to 379.84bn naira ($1bn) in the first half of the year,
from 532.63bn naira in the same period a year earlier. But,
looking through the risks, a global asset manager has spotted a
potentially juicy opportunity in the travel sector. The Carlyle
Group, listed on the Nasdaq exchange, has explained its rationale
for investing millions in an online travel agency that specialises
in tourism in West and East Africa. â€` Jackie Cameron
Media release:
Global alternative asset manager The Carlyle Group (NASDAQ: CG)
today announced that it has agreed to invest $40m in Wakanow.com
Limited (Wakanow), an online travel agency focused on West and
East Africa, with principal operations in Nigeria. Equity came
from Carlyle’s Sub-Saharan Africa fund and further financial
details were not disclosed.
Founded in 2009 in Nigeria, Wakanow is one of West Africa’s
largest full-service online travel companies, providing its
customers with a one-stop online booking portal for flights,
hotels, holiday packages, and other travel services and
ancillaries. Complementing their online offering, Wakanow also
operates a network of traditional brick-and-mortar travel centres
and has operations in Nigeria, Ghana, Kenya, UAE and the UK.
Wakanow enjoys strong brand recognition and a scale advantages in
its local markets. This investment adds to Carlyle’s experience in
the online travel sector, where it has invested in companies such
as C-trip, one of the major online travel agencies operating
across China, the Latin American travel and tour operator CVC
Brasil, and Vasco Turismo, one of the largest travel operations
groups in Peru.
Obinna Ekezie, Co-Founder and CEO, Wakanow, said: “We are excited
to partner with Carlyle as we continue to grow and expand in
Africa and beyond. Carlyle’s global footprint and scale as well as
its extensive experience and network in the online travel sector
will help us to further develop our offerings and broaden our
customer base.”
Idris Mohammed, Managing Director, The Carlyle Group, said:
“Wakanow has experienced incredible growth since inception,
disrupting the travel market and taking market share both online
and offline. We believe that this strong growth trajectory will
continue as Wakanow benefits from an expanding middle class across
the continent in addition to increasing internet penetration and
mobile connectivity, which is driving increased online traffic. We
look forward to working with Wakanow’s management team to help
them deliver on their vision for growth and expansion.”
Mayowa Ayodele, Chief Investment Officer, Platform Capital, one of
Wakanow’s lead investors, said: “We are happy to partner with
Carlyle and look forward to working together with them to
strengthen Wakanow’s market position, accelerate innovation,
deepen its systems and processes to realise the vision of a truly
world class online travel agency with African roots.”