Led · Equity · May 2017

Frontier Car Group is a Berlin-based startup building used-car marketplaces across high-growth, emerging markets. It operates in Nigeria, Mexico, Chile, Pakistan, Indonesia, the USA (after acquiring WeBuyAnyCar), India and Poland. The platform offers listings plus inspection reports, financing, pricing guides, warranties, insurance and a Dealer Management System for dealers. Frontier plans to expand dealer services, resale services via OLX, and develop CarFax/Blue Book-style pricing products. The company sold about $700 million worth of cars in the past year, roughly triple its performance a year earlier; earlier reporting noted 50,000 cars sold and a then-target of $200 million in annualised revenues after its prior raise. Management attributes the growth to early integration with OLX and aims to add trust, transparency and a comprehensive suite of services to buyers, sellers and dealers. Frontier Car Group is a Berlin-based startup that operates a used-car marketplace focused on emerging markets in Africa, Latin America and Asia. Its platform gives sellers online quotes, inspects and buys vehicles, and lets buyers browse inventory and arrange financing via app or web. Since launching at the end of 2016 the company has sold 50,000 vehicles and is on track to do $200 million in annualised revenues. Frontier runs operations today in six countries: Chile, Indonesia, Mexico, Nigeria, Pakistan and Turkey, and has made local sourcing deals such as a contract to sell ex-Alamo rentals in Mexico City. The company says it is targeting faster, safer transactions than local alternatives and also provides inventory to smaller dealers where auction houses and import services are lacking. CEO Sujay Tyle has said Frontier expects to be EBITDA-profitable by Q2 2019. Frontier Car Group operates online marketplaces and infrastructure for buying and selling used cars across emerging markets. The company runs operations in Chile, Mexico, Nigeria, Pakistan and Turkey while operating out of Berlin and employing about 200 people. Its product combines technology and operational services aimed at making used-car sales more efficient and fair in markets the founders describe as “fundamentally broken.” Frontier says it will use the recent financing to expand its presence in Chile, Mexico, Nigeria, Pakistan and Turkey. Leadership includes co-founder and CEO Sujay Tyle, alongside Peter Lindholm and Andre Hussman, who bring prior experience from Hired.com, Millicom/Rocket Internet and Auto1 respectively. The company framed its mission as reinventing used automotive sales in top-tier emerging markets through technology and infrastructure creation.