This buy and sell car start-up got R1.1bn funding from OLX
CAPE TOWN - Global online marketplace and classifieds business, OLX Group owned by Naspers, has announced it has invested $89 million (R1.1 billion) in an online car marketplace Frontier Car Group (FCG).
This comes after Naspers liquidating some of its stake in Chinese company Tencent, according to Business Insider.
Who is Frontier?
Founded in 2016, The startup is headquartered in Berlin and is currently operating in six countries. The company was co-founded by CEO Sujay Tyle, CTO André Kussmann and Peter Lindholm.
Currently, it has grown to be one of the largest online and offline used car marketplaces in the high-growth markets where they operate. The company is expected to carry out over R3.1 billion ($250 million) of vehicles in 2018.
According to reports, the group plans to use the funds, as well as access to OLX Group’s global footprint in high-growth markets, to fuel its expansion into new markets.
Additionally, it also wants to create a better user experience for its instant cash services. Private sellers of used cars will now be able to sell their vehicle through either OLX Group classifieds or FCG’s “guaranteed buy” service, which is set to launch in South Africa.
This will allow them to sell their cars in less than an hour and potential buyers can receive financing and insurance, 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 a 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.
- BUSINESS REPORT ONLINE