OLX Group is a global online marketplace founded by Fabrice Grinda and Alec Oxenford as a Craigslist alternative for the no-US markets. Headquartered in Amsterdam, the company’s 95% stakes were acquired by South African media and technology group Naspers in 2010.
The OLX marketplace is a platform for buying and selling services and goods such as electronics, fashion items, furniture, household goods, cars and bikes. In 2014, the platform reportedly had 11 billion page views, 200 million monthly active users, 25 million listings, and 8.5 million transactions per month.
According to TechCrunch, OLX along with the online classifieds division of Naspers, Prosus announced that they would invest up to $400 million in Frontier. The investments would be in the form of equity, secondary share acquisitions and existing business shares.
Frontier Car Group offers buyers and sellers a range of services such as inspection reports, financial, pricing guides, warranties and insurance. In a world where the developed markets are gradually turning towards electric cars, there will be a lot of used traditional fuel cars that would need to be maintained well to have a reasonable resale value. The used car marketplace is growing as more and more people are buying these old cars and save significant money. This has been witnessed in India amidst the slowing economy as companies such as Cars24 is growing as a used car marketplace.
OLX’s plan is to expand more services for one of the key players in the used-car space, dealers — via Frontier’s Dealer Management System. Since Frontier sold about $700 million worth of cars in the past year, triple its value of a year before. This is not the first time that OLX will be investing in Frontier though. TechCrunch states that, in May 2018, Naspers invested $89 million in the business, an investment that came just weeks after Frontier had raised $58 million from Balderton, TPG and others. The investment and the partnership have the potential to bring more traffic to Frontier via OLX and it means more sales.