Frontier Car Group, the parent firm of Car45 has raised $400 million from OLX Group. The company is looking to work with OLX Group to expand its operations in emerging markets.
In a statement by Martin Scheeepgouwer, the CEO of OLX Group he states, “Together with FGG, we are aiming to build the leading global used car marketplace, offering a premium and convenient service to millions of car buyers, sellers and dealers. We’re in a unique position to accelerate the expansion of this platform worldwide. Our experience in India is a great proof of concept, where within the space of a year, our joint venture has already increased the number of stores threefold, with a car purchase volumes continuing to grow by10% month-on-month.”
- The OLX Group’s funding will help frontier car fuel their expansion in emerging markets. The $400m investment which comprises a primary injection of capital in FCG and the contribution of OLX’s joint venture shares in India and Poland, as well as the acquisition of shares held by other investors, founders and management puts the valuation of FCG at $700m.
- The deal will accelerate FCG ‘s ranking to one of the top five car marketplace worldwide and number one in various markets in Africa where OLX strategically pulled out make room for Cars45.
- FCG’s instant cash services , combined with OLX’s proprietary classified technology and reach have transformed the online car marketplace, making buying and selling used cars more convenient and efficient for individual car sellers, buyers and sellers.