Yad2’s Valuation Soars to $420 Million Amidst Investor Interest

A decade after its acquisition by German media conglomerate Axel Springer, Yad2 (Hebrew for second hand), Israel’s classifieds platform, is now valued at approximately $420 million (NIS 1.5 billion) according to Israeli outlet Calcalist. This significant appreciation reflects strategic enhancements and growth initiatives undertaken since the 2014 purchase.

In 2014, Axel Springer acquired Yad2 from Walla, then under the ownership of Shaul Elovitch, for NIS 806 million ($226 million). This move marked a pivotal expansion of Axel Springer’s digital footprint into the Israeli market. Currently, the American investment firm KKR, a stakeholder in Axel Springer, is poised to assume control of Yad2. This transition is part of a broader corporate restructuring within Axel Springer, expected to conclude next month.

The impending change in ownership has attracted attention from both domestic and international investment entities. Notable among the interested parties are the CVC investment fund, recognized for its profitable exit from Israeli tech firm ironSource; the Apax fund, a previous contender in the 2014 bid for Yad2; and the Fortissimo fund, which maintains a controlling interest in Cellcom. Additionally, discussions have been reported between KKR executives and the leadership of Meir Group, Israel’s official importer of Volvo and Honda vehicles. While these meetings’ specifics remain confidential, they show the heightened interest in Yad2’s future.

Despite the interest, Yad2’s CEO, Tomy Schoenfeld, has stated that “no process is underway to sell the company, and it is not on the shelf.” This clarification suggests that any formal negotiations or sale processes are contingent upon the finalization of Axel Springer’s internal business separation.

Since its acquisition, Yad2 has diversified its services beyond traditional classifieds. The platform expanded into job listings with the purchase of IL Wanted and leveraged its extensive user data to offer targeted advertising solutions. Innovations such as market analytics, property valuation tools, and premium ad placements have further solidified Yad2’s market position. These strategic initiatives have propelled the company’s financial growth, with annual revenues escalating from €41 million (NIS 150 million) in 2014 to an estimated €240 million (NIS 900 million) by the end of 2024.

Yad2 continues to dominate Israel’s online classifieds sector, though it faces competition from platforms like Facebook Marketplace. Under the leadership of CEO Tomy Schoenfeld, who assumed his role in 2022, the company remains focused on innovation and maintaining its competitive edge.

As KKR deliberates on the future of its digital assets within Axel Springer, the possibility of Yad2 being sold either as part of a larger portfolio or as an independent entity remains open. Industry analysts anticipate that a formal sale process could commence by the end of the year, contingent upon the completion of the ongoing corporate restructuring.