Leading operator of online classifieds businesses in frontier and emerging markets, Frontier Digital Ventures, has announced its investments in AutoDeal, the #1 new car sales portal in the Philippines, and Propzy, the leading transaction focused classifieds business in Vietnam.
The total investments are worth A$3.1m and A$1.6m into AutoDeal and Propzy respectively. They are in line with FDV’s near-term goal of bringing 10 portfolio businesses into the monetisation stage. FDV remains focused on its strategy of establishing a A$100m market value for each of its monetising investments through subsequent funding rounds and/or stake sales.
FDV founder and CEO, Shaun Di Gregorio commented on the deal:
“AutoDeal and Propzy are both very exciting investments for FDV in the booming Southeast Asian market. We see a clear path for AutoDeal to leverage our experience in other markets as it seeks to extend its leadership across both new and used car sectors. Propzy will bring significant synergies to our portfolio as it represents our first investment into a fully transaction focused classifieds business, rather than relying on traditional advertising revenue. Both portfolio companies will move straight into our tier 1 portfolio category given their current stage of rapid monetisation.”
The investment into Propzy is in line with FDV’s focus on high growth frontier markets. Vietnam has a total population of 92 million with a very high mobile penetration rate of 147 per cent. Propzy has established a clear competitive advantage by focusing on high-quality listings from qualified and approved real estate agents. Their online platform connects an agent with a potential buyer and facilitates the meeting. Upon completion of the transaction, Propzy receives a commission based on the sale value the agent achieves. In Q1 2017, Propzy experienced a 440 per cent quarter on quarter growth in property listings from Q1 2016, with the average deal value increasing 50 per cent quarter on quarter. Strong listing growth in 2017 is expected to significantly drive revenue growth due to the transaction focused business model.
Propzy’s founder and CEO John Le said: “The growth opportunities in Vietnam are enormous, and I am incredibly excited to work with FDV to drive these opportunities forward. The investment will allow us to fast track growth and establish a market leadership position.”