Local information firms are surely becoming a must have on portfolio of Indian venture capital firms. Nexus India Capital has invested $5 million in New York-based classifieds firm OLX. Suvir Sujan, co-founder and managing director, Nexus India Capital, has confirmed
the investment to VCCircle. Besides India, OLX also has a strong presence in Spain, Portugal, Mexico, South America, China, and the Philippines.
"We are strong believers in the future of free online classifieds around the world and think that the OLX team is one of the best teams to execute this vision," said Sujan in an email response.
OLX raised its series-B round of $13.5 million in December 2008 from General Catalyst Partners, Bessemer Venture Partners, Founders Fund and DN Capital. With this investment from Nexus, the total funding raised by OLX stands at $28.5 million. OLX, founded in March 2006, is
used in over 40 countries in 15 languages.
OLX founder and CEO Fabrice Grinda told TechCrunch that new investment will be used to make new acquisitions, implement site improvements, expand globally, and pursue aggressive marketing initiatives. OLX has already acquired a classifieds site targeting Hispanic market and has also invested in a Chinese classifieds website.
There have been a number of investments in local information firms and the area continues to attract investment. Earlier this year Helion Ventures invested in Delhi-based GETIT Infoservices, a producer of yellow pages and directories. Another recent investment was Intel Capital's deal with online B2B marketplace Indiamart, which lists companies and connects Indian suppliers with domestic and global buyers.
Other investment in this area include SAIF Partners backed JustDial, Norwest Venture Partners backed Sulekha and Matrix Partners backed AskLaila.
Leave Your Comment