Berlin-based startup, Frontier Car Group (FCG) has secured $400 million investment from OLX Group. The capital infusion is expected to accelerate the growth of FCG into the top five car marketplaces worldwide and make it number one in some African markets. Its subsidiary, Cars45 is currently operating in a nascent market in Nigeria.
Nairametrics was informed that the $400 million would be disbursed into the expansion of FCG’s footprint among emerging markets. This isn’t connected to the operation of Cars45 – which also raised $5 million in 2017 and will seek more investment as the quest for growth increases, according to Cars45 founder and CEO, Etop Ikpe in an interview with Nairametrics.
This isn’t OLX’s first FCG investment: The $400 million fund isn’t the first capital FCG will be receiving from OLX Group. The startup had received $89 million from OLX Group in 2018. This helped in the acquisition of WeBuyAnyCar in the United States.
What this means: The $400 million capital makes OLX Group the largest shareholder in FCG as it is an exchange for new shares and to buy out existing shareholders in FCG.
It also boosts the value of FCG which reported impressive revenue placed at $700 million in 12 months. Since OLX took up stake in FCG, the used-cars marketplace venture has increased its presence from four to ten markets including Nigeria, United States, Argentina, Poland, India, Chile, Pakistan, Indonesia, Colombia and Mexico.
A partnership that works: While speaking about the impact of OLX Group on the operation of FCG, the co-founder and CEO of the group, Sujay Tyle said since OLX began to invest in the startup, the growth of FCG has been on an upward swing
“Together with OLX Group and Prosus, we are aiming to revolutionize the used car market in several emerging and developed economies by adding trust, transparency and a comprehensive suite of services to all participants in the ecosystem.”
He added that, “This is a testament to FCG’s team, the ripe market opportunity, and the results of early integration with OLX in our key markets.”
Also speaking about the deal, Martin Scheepbouwer, CEO of OLX Group, said, “Together with FCG, we are aiming to build the leading global used car marketplace, offering a premium and convenient service to millions of car buyers, sellers and dealers. We’re in a unique position to accelerate the expansion of this platform worldwide.
“Our experience in India is a great proof of concept, where within the space of a year, our joint venture has already increased the number of stores threefold, with car purchase volumes continuing to grow by 10% month-on-month.”
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What you need to know: OLX Group is part of classified units of Prosus, the European company owned by South African firm, Naspers.
This decade will be bullish for Nigeria’s tech space – DLM Capital Group
DLM Capital Group has announced its plans to expand into Nigeria’s million-dollar fintech sector.
Leading developmental investment bank, DLM Capital Group has announced its plans to expand into Nigeria’s million-dollar fintech sector, following its acquisition of Links Microfinance Bank.
The license will give DLM Capital Group the mandate to operate small-scale banking services in Nigeria. This will also allow the launch of its star digital lending brand, Sofri, in the second quarter of this year. The acquisition, combined with the bank’s many fintech efforts already underway, will position it to deliver even more value for corporates and consumers.
DLM Capital Group’s acquisition of Links MFB represents both an entry into new businesses and complementary enhancements to the institution’s existing subsidiaries.
First, this prospect opens new market opportunities for the bank on the African continent.
Second, the acquisition will enable the institution to exit its ‘legacy bank’ visibility and work more closely with the fintech community to build a ‘challenger bank’ brand that proffers innovative technological solutions for the Nigerian market.
What they are saying
The Corporate Communications Manager at DLM Capital Group, Chinwendu Ohakpougwu stated:
“We are particularly excited about our acquisition of Links MFB and how it enhances the growth trajectory of our business. This highly strategic acquisition represents another significant milestone for us on our journey as a resilient and well-capitalized financial institution with advanced scale and capacity to deliver sustainable and best-in-class financial services within the Nigerian market.
We are confident that this decade will be bullish for Nigeria’s tech space and are ready to work with the fintech community in strengthening the solutions necessary to meet consumer needs.”
What you should know
DLM Capital Group prides itself as a foremost developmental investment bank in Africa and functions as a sole arranger to more than 80% of structured finance transactions in Nigeria, with 100% of all securitization transactions in the market currently.
DEAL: Curacel raises $450,000 pre-seed funding to drive insurance inclusion in Africa
Curacel’s flagship CLAIMS platform acts as a bridge between primary care hospitals and Africa’s insurance companies.
Curacel, an AI-powered platform for claims processing and fraud management in Africa, has raised $450,000 pre-seed funding.
The round was led by Atlantica Ventures and Consonance with participation from Kepple Ventures and other African angel investors.
The insurtech startup already works with some of the biggest insurers on the continent, including AXA Mansard, Liberty Health, and Old Mutual, as well as more than 800 hospitals in Nigeria, Ghana, and Uganda. It plans to expand into 10 new African countries by the end of 2021.
Every year, African insurers lose more than $12 billion to fraudulent, wasteful, and abusive claims. Curacel’s flagship CLAIMS platform acts as a bridge between primary care hospitals and Africa’s insurance companies, using advanced artificial intelligence to ensure that insurance companies only pay claims for the correct treatment, appropriate medications, and recommended patient therapies.
Curacel is also scheduled to launch Curacel Capital, a cash advance product that makes it easier for healthcare providers to access working capital to mitigate financial challenges. Delayed payments and other inefficiencies in the payment process mean many African healthcare providers often have to make the difficult choice between keeping the books balanced or providing healthcare at a loss.
With Curacel Capital, healthcare providers can access lump sums of up to three times their average monthly billings, based on claims processed on the Curacel portal, ensuring that they can continue to deliver essential services without undue disruption.
With insurance penetration at just 2.8% across the continent, many Africans are one accident or health emergency away from poverty. And in Africa’s communal societies, tragedy impacts entire communities, with people emptying their savings to pay for medical expenses, burials, or other disaster relief for family members and kin. By leveraging Curacel’s products and services, insurers across the continent are better equipped to close the insurance gap and safeguard prosperity.
The new investment will be used to accelerate Curacel’s expansion across Africa and facilitate the goal of becoming Africa’s premier provider of embedded finance technology for insurance.
What they are saying
According to Curacel Co-founder and CEO, Henry Mascot, “We are excited to have these investors on board and we are looking forward to partnering with them to drive our vision of improving insurance inclusion across Africa. At Curacel, we are uniquely positioned to safeguard livelihoods and increase the quality of life through our unique, market-leading products and services.”
IK Kanu, Partner at Atlantica Ventures noted that “the African insurance market represents a significant growth opportunity and we are delighted to be partnering with Curacel to drive growth in this sector. There is an opportunity to create an entirely new market of products and services here and we look forward to supporting the team to improve health outcomes across the continent.”
“We believe the Curacel team has what it takes to be market leaders and we are excited to support them. They have a great product and we are delighted to be coming on board at this early stage,” Mobolaji Adeoye, Managing Partner at Consonance added.
Nairametrics | Company Earnings
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