The Berlin-based used-car sales startup that operates online automotive marketplaces in emerging markets across Latin America, Africa and Asia recently procured a total of $58 million in new funding.
Frontier Car Group (FCG) has received $41 million in Series B from Balderton, TPG Growth, Fraser McCombs Capital and AutoTech Ventures, as well as an additional $17 million in debt financing from both banks and institutions, according to a news release.
Led by 24-year-old co-founder and chief executive officer Sujay Tyle, the company specializes in automotive sector technology and infrastructure creation. FCG currently operates in Nigeria, Mexico, Chile, Turkey, Pakistan and Indonesia.
Tyle said that the Berlin-based startup will use its newly acquired funding to increase market share among current markets.
“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 nascency of the industry — and our team’s ability to disrupt it,” said Tyle. “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 FCG's CEO.
While FCG will continue making investments in Asia, its expansion plans will primarily focus on growing its business within markets in Africa and Latin America, according to the company.
Just two years after full-scale operations launched in September 2016, FCG has invested in localized, used-car businesses in Africa, as well as built technical platforms for markets in Latin America and Asia.
In addition to Mexico’s used-car marketplace, VendeTuAuto (www.vendetuauto.com) and Chile's VendeNosTuAuto (www.vendenostuauto.com), FCG has built Indonesia's BeliMobilGue.co.id and Pakistan's CarFirst.com platforms.
In May of last year, the Cars45.com marketplace in Nigeria received backing from FCG as part of its Series A round.
“Balderton first invested in FCG a little under two 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,” explained Daniel Waterhouse, who has led all of Balderton's investments in FCG. “We are excited to further support the company and look forward to the next chapter of this extraordinary story.”
Along with the launch of hundreds of purchase centers across its current markets, in its short time, FCG has also developed an auto auction platform designed for dealers to bid on cars in real-time.
According to Balderton, FCG has reached an annualized gross merchandise volume close to $200 million.
Tyle was apart of the team that founded Hired.com where he served as the chief operating officer, prior to launching FCG with Peter Lindholm and Andre Kussmann in 2016.