Prosus is in active talks with multiple players to investigate the sale of the car unit of the classified company Olx in several markets, including India and Indonesia, according to a source familiar with the matter.
In a statement, the technology investor said pursuing a global growth strategy for Olx’s auto business “is no longer the right approach for our shareholders” and that it was “examining all options for the Olx Autos business” . The company blamed ongoing macroeconomic and market challenges for the move.
In India, Prosus has held talks with some investors of Cars24, a unicorn startup, to explore the sale of the local unit of Autos, the source said. Cars24 counts DST Global and SoftBank among its donors. Those investors passed on the deal because they are shifting focus to preserving cash, the source said, requesting anonymity when discussing private matters.
Prosus has been fighting for Olx Autos’ play for years. In early 2021, the company closed Frontier Car Group’s Berlin office and shifted focus to Latin American and Asian markets.
Olx Autos increased its sales by 84% to $1 billion in the first half of fiscal 2022, Prosus said in November. But Autos is not profitable. Olx said earlier this year it would cut 1,500 jobs internationally.
“Besides Olx Autos, the core business in OLX 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 classification segment as a whole,” said Prosus.