OLX Group (OLX) has announced its plan to enlarge its stock ownership in the online car marketplace Frontier Car Group (FCG) with an investment of US$400 million. With this plan, OLX Group officially became the largest stockholder in the company.

OLX Group’s deal with FCG includes its investment, the contribution from the joint-stock of OLX India and OLX Poland, as well as the stock buyback owned by early investors, depends on the tender process.

With the deal, FCG offers instant cash service combined with technology and classified ads reach from OLX. It seeks to transform the online car market and make the purchase process easier and more efficient for individuals, buyers and used car dealers.

Through FCG, used car dealers can have wider reach and access to inventory, complete inspection reports, funding schemes, and other innovative services. Sellers, on the other hand, can get their hands on “purchase collaterals”, checkup, funding, and other offers such as guarantee and insurance.

Also Read: BeliMobilGue ropes in Johnny Widodo from OVO as its new CEO; to receive over US$30M from Frontier Car Group

OLX offers an easy ad listing that’s already reputable among used car buying and selling markets across the world.

With the two companies joining forces, both seek to accelerate expansion and improve service for buyers and sellers, creating a new benchmark in the used car industry.

Using the AI-powered Dealer Management System (DMS) from OLX, dealers will get access to improved selling capability and price list through Carfax and Blue Book-style products. Sellers will also get the options of new, reliable, and transparent. selling methods that they can choose from.

OLX first invested US$89 million in FCG in 2018, boosting up the Berlin-based company’s seed funding for expansion, including acquiring WeBuyAnyCar in the U.S.

Martin Scheepbouwer, CEO OLX Group, said: “With FCG, we hope to build a global online car marketplace that has a premium and convenient service for millions of buyers, sellers, and dealers.”

Meanwhile, OLX has also collaborated with FCG’s entity in Indonesia, BeliMobilGue (BMG) for the last year.
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Photo by Max Rovensky on Unsplash

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