May 9, 2009
Indian VC Firm, Nexus India Capital Invests $5 Million in OLX Classifieds
OLX is an online classified ad company that has spanned its services worldwide with offices in India, Spain, Lithuania, Lichtenstein, Brazil, and many other countries. OLX is unique in that it allows the user to create colorful ads with even video, if they so choose. OLX was mainly founded to provide a better alternative to Craigslist, because the founders had discovered that Craigslist cannot be used to find things worldwide. For this reason, OLX has advertised itself as a global classified website. OLX also offers a FaceBook application and mobile applications.
The funding was led by Nexus India Capital, but other investors who participated in the funding include General Catalyst Partners, Bessemer Partners, Founder’s Fund, and DN Capital. In a report to TechCrunch, OLX’s founder, Fabrice Grinda stated that proceeds of this funding will go to make more new acquisitions, add improvements to OLX’s websites, expand to other global markets, and follow a more aggressive marketing strategy. Noticing that the Hispanic market seems to be doing well for OLX, the company is also investing the Indian and Chinese markets.
The classified market in India is a growing market in a budding consumer society, with Helion Ventures investing in Delhi based GETIT Infoservices, which produces the Yellow Pages and other directories. Another sign that the ad market is growing in India is that Intel Capital had invested in Indiamart, which is in the B2B Marketplace, which lists Indian companies with both domestic and international suppliers.
Nexus India Capital is based in both India and Silicon Valley and likes to invest in entrepreneurs who are passionate and driven throughout all market sectors in India. The vc firm also likes to invest in companies who can meet the demands of large or potentially large markets in India and worldwide. Nexus India Capital usually invests early in the life of a company and the vc firm has more than $300 million in capital under its management. Some companies in Nexus’s portfolio include dimdim, Dlight Design, Games2Win, Kirusa, Komli, MapmyIndia.com, and others.
General Catalyst Partners is a firm that invests both in venture capital and private equity. Its motto is “Entrepreneurs investing in entrepreneurs,” and likes to invest in exceptional entrepreneurs who build companies that have the potential to be market leaders in the tech industry. The vc firm was founded in 2000 and its managing directors are all experienced entrepreneurs. Some companies in General Catalyst Partners’ portfolio include Advanced Electron Beams, Kayak.com, Black Duck, Bullhorn, Inc., etc.
Bessemer Partners is an old vc firm that was founded in 1872 by Henry Phipps, Jr. and Andrew Carnegie. The vc firm continues on to this very day with measurable success in the venture capital industry.
For more information about OLX Classifieds, click here.