OLX, an online classifieds site based outside the US, has raised $5 million in funding from Nexus Capital India.
This round brings the total amount of funding to $28.5 million. OLX received $13.5 million from General Catalyst Partners, Bessemer Venture Partners, Founders Fund, and DN Capital in April 2008, and $10 million in September 2006 with the same VCs and various angels investors.
The investment will be used to make acquisitions, implement site improvements, expand globally, and pursue aggressive marketing initiatives, according to OLX founder and CEO Fabrice Grinda.
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OLX is little threat to US online classifieds mogul Craigslist, but is growing internationally, with a presence in over 87 countries in 39 languages, and 125 employees spread in offices all over the world: New York, Buenos Aires, Beijing, and Moscow.
It is most popular in Spain, India, Portugal, Mexico, South America, China, and the Philippines. The service’s success in the Philippines is a result of its white label partnership with Friendster, which remains a popular online destination in the country, writes Techcrunch.
While OLX may play second fiddle in the States, it prides itself on being a second-generation site, complete with Web 2.0 features such as social network widgets, better search capabilities, interactive maps, and mobile functionality.
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eBay’s Kijiji is also a competitor in the space, but Kijiji has set its sights on catching up to Craigslist in the US, and has reportedly considered changing its name.
In 2007 OLX made an investment in free Chinese classifieds site Edeng.cn and acquired Mundoanuncio.com, a Craigslist-like classifieds site targeting the Hispanic market, in 2006.
Meanwhile, Craigslist is under scrutiny by Attorneys General over prostitution, not to mention the “Craigslist Murder” that recently took place.
A study last month found that Craigslist’s recent growth is fueled by lower-income segments, suggesting that with time, it will only grow less appealing for wealthy or upper middle-class consumers.
May 8, 2009
source: marketingvox.com