According to the source, Prosus is looking to offload its Autos unit in order to redeploy resources elsewhere. The company is eyeing the Indian and Indonesian markets for potential sale opportunities, as both countries are increasingly demanding better automotive options. Prosus has already met with potential buyers in each country, and expects further contact as it explores a sale.
According to technology investor, Olx’s global growth strategy for its automotive business is no longer the right approach. The company is exploring all options for the business in light of ongoing macroeconomic and market challenges.
In the early 2020s, Prosus shut down Frontier Car Group’s Berlin office after declaring that it was focusing exclusively on markets in Latin America and Asia. This move likely distressed Frontier’s key clients, who were left searching for another automotive services provider.
According to Reuters, OLX Autos increased its revenue in the first half of its 2022 financial year by 84%, but is not yet profitable. This indicates that managerial issues at the company are still being corrected. Earlier this year, Olx said it would cut 1,500 jobs internationally as part of a program to reduce costs.