A global marketplace leader you've never heard about

Adevinta’s leading brand is Leboncoin, which is the dominant generalist portal in France with more than 28 million average monthly visits. Leboncoin has leveraged its user base to build market-leading positions in automotive and real estate classifieds, working with roughly 20 thousand car dealers and 40 thousand real estate agents in France. Think of Gumtree, Carsales and REA all under one roof. More recently, Leboncoin has been working on transitioning from a pure classifieds business to participate in the transactions that happen on its platform. The business has strong network effects, as more users attract more listings and vice versa, creating long-term sustainable advantages with increasing optionality. The company is also seeking to replicate the success in France into faster-growing markets, namely Spain and Brazil, which are in earlier phases of their digital transformation. 

The thesis recently strengthened when Adevinta announced the acquisition of eBay's classifieds business, which eBay viewed as non-core. The acquisition gives Adevinta access into new markets such as Germany, Canada, Benelux, the UK and Australia (including Gumtree itself) to create a globally scaled classifieds leader. Notably, eBay will become a major shareholder in Adevinta as part of this deal, speaking well to its view of the quality of the assets Adevtinta is buying and the ability of Adevinta’s leadership team to enhance their value. We’re excited to invest alongside patient capital in a company with market-leading positions and long runways for growth.

Take a different approach to investing

Lakehouse Capital embraces a long-term, high-conviction approach that seeks asymmetric opportunities. Hit the 'CONTACT' button below to find out more.