Naspers’ classifieds business, OLX Group, has announced it has invested $89 million (R1.1 billion) through its early-stage investment arm OLX Ventures, in the C series funding round of online car marketplace Frontier Car Group (FCG).
The startup, headquartered in Berlin and currently operating in six countries, will use the funds, as well as access to OLX Group’s global footprint in high-growth markets, to fuel its expansion into new territories and enhance its instant cash services for users.
FCG was founded in 2016 and in recent years has launched and grown the largest online and offline used car marketplaces in the high-growth markets where they operate. It is expected to transact over $250 million of vehicles in 2018.fe
Private sellers of used cars will now be able to sell their vehicle through either OLX Group classifieds or FCG’s “guaranteed buy” service, increasing both the convenience and speed of selling. Meanwhile, FCG’s dealer base will benefit from proprietary access to OLX Group’s platforms, being able to sell their portfolio faster and more efficiently.
“Our mission at OLX Group is to make it super easy for users to buy or sell almost anything. When it comes to cars, FCG will help us to do just that, offering a more convenient service to our car sellers and buyers around the world,” said Martin Scheepbouwer, OLX Group CEO.
“Convenience is the future of classifieds and we will drive it.”
“The growth we’ve seen since our foundation in 2016 is testament to a market ripe for disruption. As we look to grow further and lead the digitization of the automotive sales sector, this partnership provides us with the platform and global presence that we need to become the leading used car marketplace across high-growth markets,” said Sujay Tyle, CEO, Frontier Car Group.