VentureSouq, a UAE-based investment platform has exited the German-based online and offline used-car marketplace, Frontier Car Group, to Naspers’ owned OLX Group.
VentureSouq sold its stake in Frontier Car Group to OLX Group which recently injected $400 million making OLX Group the largest investor in the car classifieds group. VentureSouq invested in the company less than two years ago.
According to Tammer Qaddumi, partner at VentureSouq. “Over the span of our investment, they were able to execute multiple transformative moves and ultimately deliver a great outcome for their investors. We are thrilled to have been able to participate with them.”
Frontier Car Group’s Cars45 has operations in Kenya and Nigeria and is looking to work with OLX Group to expand operations in emerging markets.
The Frontier Car Group will use OLX Group’s US$400 million to fuel expansion in emerging markets. The $400m investment, comprising 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 making OLX Group the largest shareholder in FCG and puts the valuation of FCG at $700m after a series of raises.
FCG’s instant cash services, combined with OLX’s proprietary classifieds 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 dealers.
Through FCG, car dealers have access to a wider range of inventory, proprietary inspection reports, floor-plan financing, pricing guides and other innovative services; while sellers are offered a suite of new services such as “guaranteed buy”, inspection, financing and a large number of ancillary offerings, such as warranties and insurance.