Image credit: Prosus
Prosus is actively engaging with multiple players to consider the sale of classified Olx automotive divisions in multiple markets, including India and Indonesia, according to sources familiar with the matter.
The technology investor said in a statement that pursuing a global growth strategy for Olx’s automotive business “is no longer the appropriate approach for shareholders” and that they are exploring “all options for the Olx Autos business.” rice field. The company blamed the move on ongoing macroeconomic and market challenges.
In India, Prosus has met with some of the investors in unicorn startup Cars24 to consider selling Autos’ local division, according to sources. Cars24 counts DST Global and SoftBank as backers. The investors abandoned the deal as they shifted their focus to saving cash, the sources said, requesting anonymity to discuss private matters.
Prosus have been vying to play the Olx Autos for years. In early 2021, the company closed the Berlin office of Frontier Car Group and shifted its focus to the Latin American and Asian markets.
Prosus said in November that Olx Autos increased revenue 84% to $1 billion in the first half of fiscal 2022. But cars don’t make money. Olx said earlier this year that internationally he would cut 1,500 jobs.
“Beyond Olx Autos, OLX’s core classification business is profitable, cash flow positive and growing rapidly. Let’s go,” said Prosus.