Nigeria’s Cars45 May Benefit From FCG’s USD 41 Mn Series B Round
Frontier Car Group has secured a successful Series B round of funding that will see the Berlin-based car-trading business narrow its focus on Africa, Latin America and similar emerging markets. Four investors led the USD 41 Mn round of investment, namely, Balderton, Fraser McCombs Capital, Autotech Ventures and TPG Growth.
Balderton and TPG Growth have been longstanding FCG partners, first investing in the company two years ago and it looks like they are set to reap the rewards of their outlay. Daniel Waterhouse, has led all of Balderton’s investments in FCG and is excited for the future of Frontier Group, “Balderton first invested in FCG a little under 2 years ago and it is staggering what the team have achieved in such a short time, getting to significant scale and building a platform that is capable of being leveraged in many different operating environments. We are excited to further support the company and look forward to the next chapter of this extraordinary story.”
CEO & Co-Founder Sujay Tyle has expressed his excitement at the disruptive potential of FCG but more so in the unicorn potential of FCG’s portfolio companies. “FCG is bringing safety, transparency, and convenience to the used car ecosystems of various emerging markets. This round, which was vastly oversubscribed, is a testament to the sheer size and nascence of the industry — and our team’s ability to disrupt it. We will be expanding quickly in our current markets and regions as we gain more and more market share where we are today. The six local companies that we have built so far all have the potential to become billion-dollar entities in itself,” said, Tyle.
Cars45 is part of the portfolio of companies under FCG together with Vende Tu Auto, Ototrink, Vendenos tu Auto, Carfirst and Belimobilgue. These companies have a global reach from Mexico, Chile, Indonesia, Nigeria and Pakistan and Turkey. Launched in 2016, FCG in the last two-years has established a global footprint that employs over 600 staff across all regions. The company has experienced rapid growth, building second-hand car marketplaces in the five countries mentioned, notwithstanding Nigeria’s Car45 which has already received USD 5 Mn from FCG in early May 2017 as part of its Series A round.
Tyle was part of the Car45 founding team in Nigeria, co-founding the West African venture with current CEO Etop Ikpe. Nigeria has been the focal point of FCG’s entrance into the African market due to the size and consumption capacity of the local market. This fits into their mandate to dominate emerging markets and Nigeria also serves as a significant indicator of the company’s disruptive potential in Africa. Ikpe recognizes the need for a used car platform that is not only scalable but trustworthy and capable of efficient service delivery.
The opportunity appears to have availed itself through FCG’s recent cash injection. Through this Series B, there is no doubting FCG’s ambitions to delve further into emerging markets and that Car45 is the perfect vehicle to further their journey in Africa.
