UAE-based investment platform VentureSouq has sold its stake in German-based Frontier Car Group, an online and offline used-car marketplace, to the OLX Group, part of Naspers’ classifieds business.
OLX Group recently injected $400 million into Frontier Car Group, which operates across 10 emerging markets including in South America and Africa and offered all investors an opportunity to sell their equity stakes in the startup.
VentureSouq, who invested into the company less than two years ago, opted to sell its stake and OLX has now become the largest investor in the Frontier Car Group.
“The first time we met the company, the potential was obvious,” said Tammer Qaddumi, partner at VentureSouq. “The team had proven they could execute, and we believed we could be a helpful shareholder for them. Over the span of our investment, they were able to execute multiple transformative moves and ultimately deliver a great outcome for their investors. We are thrilled to have been able to participate with them.”
According to Crunchbase, the investment platform participated in Frontier Car Group’s Series B round in March 2018, when it raised $41 million.