Prosus in talks to sell Olx Autos business in India and other markets

Prosus is actively engaging with several players to explore the sale of the Autos unit of Olx, a listed company, in several 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 to the Olx Autos activity”. The company blamed ongoing macroeconomic and market challenges for the move.

In India, Prosus has held talks with some of the investors in unicorn startup Cars24 to explore selling the local Autos unit, the source said. Cars24 counts DST Global and SoftBank among its backers. Those investors passed on the deal as they focus on holding the cash, the source said, requesting anonymity to discuss private matters.

Prosus has been fighting for the Olx Autos game for years. At the beginning of 2021, the company closed the Berlin office of Frontier Car Group and focused on the Latin American and Asian markets.

Olx Autos grew revenue 84% to $1 billion in the first half of its fiscal 2022, Prosus said in November. But Autos is not profitable. Olx said earlier this year it would cut 1,500 jobs internationally.

“Beyond Olx Autos, OLX’s core classification business is profitable, cash flow positive and growing rapidly. The exit of OLX Autos will lead to a significant improvement in the profitability profile of the classifieds segment as a whole,” Prosus said.