Africa’s biggest Internet group Naspers is seeing value in a Berlin-based online car marketplace Frontier Car Group.
The South African-based firm, which is one of the biggest technology investors in the world, through its classifieds business OLX is investing $89 million (R1.1 billion) online car marketplace Frontier Car Group.
The Frontier Car Group is an online car marketplace startup based in Berlin, Germany.
The investment by Naspers has been facilitated by OLX Ventures.
The Frontier Car Group currently operates in countries.
Naspers said in a statement that the startup 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.
The startup was founded in 2016 and is now supported by big brands such as VendeTuAuto in Mexico, BeliMobilGue in Indonesia, and CarFirst in Pakistan.
It is expected to transact over $250 million (R3.1 billion) of vehicles in 2018.
The combination of FCG’s instant cash services and OLX Group’s proprietary classifieds technology will provide car sellers and dealers with industry-leading products.
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.
With more than 330 million monthly users worldwide, OLX Group makes it super easy for anyone to buy and sell almost anything, such as household goods, phones, cars and houses, fueling local economies. Through consumer brands including Avito, dubizzle, letgo, OLX, and many dozen others, more than 15 million things are exchanged on its apps and platforms every single month.
“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.”