Frontier Car Group which runs Cars45 in Nigeria, has closed $41M Series B funding from Balderton, TPG Growth, automotive funds Fraser McCombs Capital, and AutoTech Ventures. to expand its used-car marketplaces within emerging markets.
The company additionally raised $17M in debt financing from leading institutions and banks bring the total to $58m.
According to Sujay Tyle, co-founder & CEO of FCG: “FCG is bringing safety, transparency, and convenience to the used car ecosystems of various emerging markets. This round, which was vastly oversubscribed, is a testament to the sheer size and nascency of the industry — and our team’s ability to disrupt it. We will be expanding quickly in our current markets and regions as we gain more and more market share where we are today. The six local companies that we have built so far all have the potential to become billion dollar entities in itself.”
Based in Berlin, and led by 24-year-old CEO Sujay Tyle, FCG will use the new funding to become the dominant used-car trading house in emerging markets across the world. It plans to apply a particular growth-focus on Africa and Latin America, while also making investments in Asia.
Daniel Waterhouse, who has led all Balderton’s investments in Frontier Car Group, said “Balderton first invested in FCG a little under 2 years ago and it is staggering what the team have achieved in such a short time, getting to significant scale and building a platform that is capable of being leveraged in many different operating environments. We are excited to further support the company and look forward to the next chapter of this extraordinary story.”