Prosus is looking to exit its stake in OLX Autos in India and Indonesia, sources informed TechCrunch.
The firm added, "The exit of OLX Autos will lead to a significant
improvement in the profitability profile of the classifies segment as a
whole." Prosus claims that other units of OLX are profitable, except for
the OLX Autos division.
- The
firm claims that OLX Autos was pursuing a global growth strategy, which
was impacted due to macroeconomic and market challenges.
- Despite increasing revenues by 84% to over $1B in H1 2022, OLX Autos was not profitable.
- The larger OLX group announced it would be cutting 1,500 jobs internationally.
- Prosus explored possible sale options with several market leaders, including Indian unicorn startup Cars24.
- DST Global and SoftBank-backed Cars24 reportedly declined the opportunity since they are focused on conserving cash.
