Prosus-owned OLX Group, a global leader in classifieds marketplaces is shutting down Berlin-based Frontier Car Group (FCG) operations in the city.
The Classifieds global giant said that it wants to refocus on more local operations in Latin America and Asia under its OLX Autos brand, into which it will fold in the remaining FCG operations.
OLX Group is the online classifieds business of Prosus, a global consumer internet group and one of the largest technology investors in the world.
Frontier Car Group is a Berlin-based startup that develops, launches, and operates used-automotive marketplaces within emerging market economies.
OLX currently has operations in Argentina, Chile, Colombia, Ecuador, India, Indonesia, Mexico, and Peru. OLX Autos independently also had three other brands: CarFirst brand in Pakistan, Cars45 in Nigeria, and webuyanycar.com in the US.
In 2019, OLX invested $400 million in FCG thereby acquiring controlling shares in the company. FCG raised $58 million in funding in 2018.
The acquisition of controlling shares in FCG brought about a change in the strategic direction of the company, which may have led to FCG co-founder, Sujay Tyle quitting in August 2020 and the exodus of eleven top executives in Cars45 in Nigeria.
Gautam Thakar was appointed as global CEO of OLX Autos effective March 15, 2021 to lead a worldwide organisation with a workforce of more than 4,000 employees across Asia, Africa, Latam, and the United States.
The company stated that the shutdown of FCG in Berlin will see 100 jobs transferred from Berlin to India.
OLX Group is said to be serving 300 million people every month in 30+ countries around the world,
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