Malaysia’s Catcha-backed Frontier Digital Ventures (FDV) has invested $3.5 million in two online classifieds portals — Philippines’ new car sales portal Autodeal and Vietnam’s transaction-focused real estate classifieds business Propzy.
In an announcement on Wednesday, FDV revealed it had invested $2.34 million (A$3.1 million) in Autodeal and $1.2 million (A$1.6 million) in Propzy.
FDV is focused on its strategy of establishing a market value of over A$100 million for each of its monetising investments through subsequent funding rounds or stake sales, it said in its statement.
The investment in AutoDeal will see FDV’s expansion into the Philippines market where the former is a market leader based on traffic and customer numbers in the highly valuable new car segment. With approximately 1.7 million visits per month, AutoDeal aims to leverage FDV’s online classified expertise to achieve market leadership in the used car market by 2018.
Meanwhile, the Propzy investment is in line with FDV’s focus on high-growth frontier markets like Vietnam. Propzy focuses on high quality listings from qualified and approved real estate agents. Its online platform connects an agent with a potential buyer and facilitates a meeting; Propzy receives a commission based on the sale value the agent achieves.
“We see a clear path for AutoDeal to leverage our experience in other markets as it seeks to extend its leadership across both new and used car sectors. Propzy will bring significant synergies to our portfolio as it represents our first investment into a fully transaction focused classifieds business, rather than relying on traditional advertising revenue,” said FDV founder and CEO Shaun Di Gregorio.
Both portfolio companies will move straight into FDV’s tier 1 portfolio category given their current stage of rapid monetisation, he added.
FDV’s portfolio currently consists of 15 market leading companies operating across 19 markets. It had raised $21.7 million (AUD 30 million) via a listing on the Australian Stock Exchange in August last year.
“We continue to look for entrepreneurs in this region – South Asia, particularly Pakistan, Myanmar and other less developed markets. We invest in market leading classified businesses and we want to continue to do that,” Gregorio had told DEALSTREETASIA in an interaction last year.