Prosus is actively engaging with multiple players to explore the sale of classified business Olx’s Autos unit in several markets, including India and Indonesia, according to a source familiar with the matter.
In a statement, the technology investor said pursuit of a global growth strategy for Olx’s automotive business “is no longer the right approach for our shareholders” and that it was exploring “all options for the Olx Autos business.” The firm blamed the ongoing macroeconomic and market challenges for the move.
In India, Prosus has held talks with some of unicorn startup Cars24’s investors to explore the sale of the Autos’ local unit, according to the source. Cars24 counts DST Global and SoftBank among its backers. Those investors have passed on the deal as they shift focus on conserving cash, the source said, requesting anonymity discussing private matters. Prosus also approached unicorn startup Spinny, another person familiar with the matter said.
Prosus has been scrambling for Olx Autos’ play for years. In early 2021, the firm shut down Frontier Car Group’s Berlin office and shifted focus on Latin America and Asia markets.
Olx Autos increased its revenue by 84% to $1 billion in the first half of its 2022 financial year, Prosus said in November. But Autos is not profitable. Olx said earlier this year that it would cut 1,500 jobs internationally.
“Beyond Olx Autos, the core classifies 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 classifies segment as a whole,” Prosus said.