Global online classified platform OLX Group has announced an investment of $89 million, through its early-stage investment arm OLX Ventures, in the C series funding round of online car marketplace Frontier Car Group (FCG), which has presence in six countries including Indonesia and Pakistan.
FCG operates brands BeliMobilGue in Indonesia and CarFirst in Pakistan in the Asian region.
Based in Berlin, FCG develops, launches, and operates used-automotive marketplaces within high-growth market economies. The startup increases the efficiency of selling and buying cars through technology, infrastructure creation, access to capital and innovative business models that allows all stakeholders to gain from its impact.
Currently boasting operations in Nigeria, Mexico, Chile, Turkey, Pakistan, and Indonesia, FCG said it will use the funds and the partnership with OLX Group to fuel its expansion into new territories and enhance its instant cash services for users.
Going by different brands in different countries, such as VendeTuAuto in Mexico, BeliMobilGue in Indonesia, and CarFirst in Pakistan, FCG says it expect to transact over $ 250 million 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.
Commenting on the deal, FCG Co-Founder and CEO Sujay Tyle said: “As we look to grow further and lead the digitization of the automotive sales sector, this partnership provides us with the platform and global presence that we need to become the leading used car marketplace across high-growth markets”.
The investment by OLX Group comes less than a month after FCG announced its Series B funding, in which it raised a total of $58 million – $41 million in equity and $17 million in debt funding – in a round led by Balderton Capital and TPG Growth.
Both Baldertan and TPG also participated in FCG’s previous round of funding in 2017 when the startup managed to secure $22 million.
The automotive trading industry in Asia has seen a number of notable deals including a $60 million funding raised by Singapore’s Carro from a round led by SoftBank Ventures Korea, Insignia Ventures Partners and B Capital Group and a $19 million investment secured by Malaysia’s Carsome from a round led by Burda Principal Investments.
In one of the biggest investments in the industry, China’s ride-hailing app operator Didi Chuxing was reported to have injected $200 million into a Beijing-based second-hand car trading platform Renrenche.