OLX believes that combining Frontier Car Group's instant cash services with its own classifieds will change the online auto marketplace. Both companies hope to make purchasing and selling used cars online easier and simple for consumers and dealers.
Car dealers are able to use Frontier Car Group to gain access to more inventory, inspection reports, floor-plan financing, pricing information, and other services. Sellers can also access its services including inspections, financing, insurance, and warranties.
OLX provides dealers and sellers a well-known service to list to buy or sell used vehicles all over the world.
OLX believes that if the two companies combine their efforts they could expand and grow all while offering improved services to dealers and sellers. Dealers would see the dealer management system improve with resell services from OLX and auto data from CarFax. Sellers would have news ways to sell off their vehicles.
OLX originally invested around $89 million into Frontier Car Group last year to help the company boost their services, expand into new markets, and purchase WeBuyAnyCar. Both companies are already working alongside one another in several markets including Asia, Latin America, and Poland.
As apart of this new investment, OLX will put another $400 million into Frontier Car Group as well as its joint venture currently operating in Poland and India. The two companies believes this investment will improve the current partnership.
Martin Scheepbouwer, CEO of OLX Group, said:
"Together with FCG, 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 car purchase volumes continuing to grow by 10% month-on-month.”
Sujay Tyle, the 26-year-old Co-Founder and CEO of Frontier Car Group, said:
“FCG has nearly tripled performance across every key metric since the first OLX Group investment less than 18 months ago and has expanded to four new countries in that time. This is a testament to FCG’s team, the ripe market opportunity, and the results of early integration with OLX in our key markets. Together with OLX and Prosus, we are aiming to revolutionize the used car market in several emerging and developed economies by adding trust, transparency and a comprehensive suite of services to all participants in the ecosystem."
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