Global consumer internet giant, Naspers, announced that it is letting go of OLX Autos, one of its Classifieds properties.
OLX Autos, part of OLX Group operates an online marketplace where people can buy and sell vehicles. It is one of the brands under Prosus N.V. (Prosus), Naspers’ subsidiary. Naspers owns around 57% of Prosus.
The announcement was made by Prosus N.V. (Prosus), Naspers’s subsidiary. It acknowledged that Autos vertical marketplace has been affected by ongoing macroeconomic and market challenges. It also admitted that the prevailing higher cost of capital, high inflation and reversal of pandemic trends have led to a significant and persistent slowdown in the second-hand car market.
It admitted that “beyond OLX Autos, the core classifieds business in OLX is profitable, cash flow positive, and fast-growing. The exit of OLX Autos will lead to a significant improvement in the profitability profile of the Classifieds segment as a whole.”
Prosus reported in its H1 FY2023 results in November that the trading loss for the classifieds segment had increased to $159 million compared to $42 million in the same period the previous year. This was due to a substantial investment made to expand OLX Autos.
It stated that “while OLX Autos has built leading positions across many of its key markets as a result of its strong technology platforms and local focus, pursuing a global growth strategy is no longer the right approach for our shareholders. Prosus will explore all options for the OLX Autos business, acknowledging that significant value exists within local markets.”
OLX Autos is currently operational in nine countries including Argentina, Chile, Colombia, Turkey, USA, India, Indonesia, Mexico and Poland. It has more than 550 inspection centres across the Americas and Asia. It operates under its own and other well-known leading brands including 321Sprzedane, and Webuyanycar.com in the US.
In 2021, OLX Group shut down Frontier Car Group Berlin operations and said OLX Autos would shift its focus on Asia and LatAm
