Prosus is actively engaging with multiple players to explore the sale of Olx’s car unit of classified businesses in various markets, including India and Indonesia, according to a source familiar with the matter.
In a statement, the technology investor said that pursuing 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 ongoing market and macroeconomic challenges for the move.
In India, Prosus has been in talks with some of the investors in unicorn startup Cars24 to explore selling the local Autos unit, according to the source. Cars24 counts DST Global and SoftBank among its sponsors. Those investors rejected the deal as they shifted their focus to conserving cash, said the source, who requested anonymity to discuss private matters.
Prosus has been fighting for the Olx Autos game 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.
Olx Autos increased its revenue by 84% to $1 billion in the first half of its 2022 fiscal 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 OLX-classified core business 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 said.
