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17th January 2022 at 15:40 #101642dangzz20835128Guest
<br>By Douglas Busvine<br> <br>BERLIN, Nov 11 (Reuters) – Prosus classifieds unit OLX Group will invest up to $400 million in Berlin-headquartered used car trading platform Frontier Car Group (FCG) and combine their operations across emerging markets.<br> <br>In 2018 OLX’s venture arm invested $89 million in FCG, a start-up co-founded in 2016 by 26-year-old American CEO Sujay Tyle with emerging market specialist Peter Lindholm and chief technology officer Andre Kussmann.<br> <br>That helped FCG expand from four markets to 10: Argentina, Chile, Colombia, India, Indonesia, Mexico, Nigeria, Pakistan, Poland and the United States.<br> <br>”They have blown all my expectations out of the water,” OLX Group CEO Martin Scheepbouwer told Reuters.
“So I said to Sujay, what more can we do?”<br> <br>OLX will inject capital in exchange for new shares and a tender offer to buy out existing shareholders. The partners will also fold in their joint ventures in India and Poland.<br> <br>It’s not clear what stake OLX will hold after its investment but it expects to be the largest shareholder.<br> <br>BUSINESS MODEL<br> <br>FCG’s approach is similar to that of another Berlin start-up, AUTO1, which is backed by Japan’s Softbank Group .<br> <br>FCG allows sellers to request a quick Slot Online Gampang Menang valuation before bringing their car in to an inspection centre for an estimate that serves as the basis for an on-the-spot sale to a dealer or private buyer.<br> <br>”That provides a superior experience for many people, especially in emerging markets where there’s a lack of transparency, a lack of trust and a lack of infrastructure,” Scheepbouwer said in an interview.<br> <br>FCG employs 1,700 people and runs 500 inspection centres.
The company has turned over $700 million in the past 12 months, tripling its revenue.<br> <br>Tyle said FCG is “very much about how we can be the most trustworthy,” something that is especially important in countries where doing cash deals can be a dangerous undertaking.<br> <br>Amsterdam-listed Prosus was spun out of South African Internet giant Naspers and holds a stake in Chinese tech giant Tencent.<br> <br>($1 = 0.9074 euros) (Reporting by Douglas Busvine; editing by Thomas Seythal)<br>