Frontier Digital Ventures invests in 2 Southeast Asian classifieds portals

By Digital News Asia June 9, 2017

Total investments are worth US$2.34 million (AutoDeal) and US$1.21 million (Propzy)
In line with FDV’s near-term goal of bringing 10 portfolio businesses into the monetisation stage

Frontier Digital Ventures invests in 2 Southeast Asian classifieds portals

FRONTIER Digital Ventures Ltd (FDV), an operator of online classified businesses in frontier and emerging markets, announce investments into AutoDeal, a new car sales portal in the Philippines, and Propzy, a transaction focused classifieds business in Vietnam.

The total investments are worth A$3.1 million (US$2.34 million) and A$1.6 million (US$1.21 million) into AutoDeal and Propzy respectively.

They are in line with FDV’s near-term goal of bringing 10 portfolio businesses into the monetisation stage. FDV remains focused on its strategy of establishing a >A$100 million market value for each of its monetising investments through subsequent funding rounds and/or stake sales.

FDV founder and CEO, Shaun Di Gregorio said: “AutoDeal and Propzy are both very exciting investments for FDV in the booming Southeast Asian market. 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. Both portfolio companies will move straight into our tier 1 portfolio category given their current stage of rapid monetisation.”

The investment into AutoDeal represents a strategic expansion into the very large Philippines market. AutoDeal was founded with a clear focus on the highly valuable new car segment where it is the clear market leader based on traffic and client numbers; which is derived from its strong partnerships with both vehicle brands and dealers.

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. It has also begun successfully rolling out a “v2.0 online classifieds business model” that focuses on expanding transactional revenue streams, including car financing through its current portal.

AutoDeal co-founder, Christopher Franks commented, “We are excited with the growth we have already experienced in new cars and look forward to accomplishing even more in used-cars given this new investment. Having partners like FDV, who have a strong understanding of online classifieds will be key to cementing our market leadership position”.

The investment into Propzy is in line with FDV’s focus on high growth frontier markets. Vietnam has a total population of 92 million with a very high mobile penetration rate of 147%.

Propzy has established a clear competitive advantage by focusing on high quality listings from qualified and approved real estate agents. Their online platform connects an agent with a potential buyer and facilitates the meeting.

Upon completion of the transaction, Propzy receives a commission based on the sale value the agent achieves. In Q1 2017, Propzy experienced a 440% q-o-q growth in property listings from Q1 2016, with the average deal value increasing 50% q-o-q.

Strong listing growth in 2017 is expected to significantly drive revenue growth due to the transaction focused business model.

Founder and CEO of Propzy, John Le, commented, “The growth opportunities in Vietnam are enormous, and I am incredibly excited to work with FDV to drive these opportunities forward. The investment will allow us to fast track growth and establish a market leadership position.”