OLX Group is a global online classifieds company that operates a network of online trading platforms in over 45 countries. The company facilitates transactions between buyers and sellers of goods and services through its online classifieds platforms. Some of OLX Group’s major brands and platforms include OLX, OTOMOTO, letgo and many more.
What are the major brands and platforms of OLX Group?
OLX Group operates over 20 online trading platforms globally. Some of its major brands and platforms include:
- OLX – Marketplace for buying and selling goods and services. Available in over 45 countries.
- OTOMOTO – Online marketplace for buying and selling vehicles. Available in Poland, Romania, Ukraine and other Eastern European countries.
- Letgo – Mobile marketplace app for local buying and selling in the US.
- PayU – Online payment service provider for OLX Group’s marketplaces.
- Tokobagus – Leading online classifieds site in Indonesia.
- PROsus – Global consumer internet group and parent company of OLX Group.
- OLX Autos – Online marketplace for buying and selling vehicles. Available in India, Poland, Romania and other countries.
- OLX Brasil – Online classifieds site for the Brazilian market.
In addition to these major brands, OLX Group also operates several other platforms that are popular in specific countries or regions like SUBITO, Mudah, Deals, Fixi and many more.
What countries does OLX Group operate in?
OLX Group has a global presence and offers its online classifieds platforms in over 45 countries across the Americas, Europe, Asia, Middle East and Africa. Some of the major countries where OLX platforms operate include:
- India
- United States
- Brazil
- Poland
- Indonesia
- Ukraine
- Pakistan
- Romania
- Portugal
- Mexico
- Colombia
- Bangladesh
- Turkey
- Belarus
- Kazakhstan
OLX Group continues to expand its global footprint by launching platforms in new countries regularly. Some of its latest expansions have been in markets like Morocco, Tunisia, Serbia, Jordan and the Philippines.
What is the business model of OLX Group?
OLX Group operates on an online classifieds business model. The key aspects of this model are:
- OLX platforms allow buyers and sellers in a geographic area to connect directly and transact.
- Seller can list their products/services for free or by paying a minimal listing fee.
- Buyers can search through listings and contact sellers directly.
- OLX makes money mainly through advertising from sellers who pay to highlight their listings.
- OLX also generates revenues through value added services like promoted listings, bump ups, spotlight ads etc.
- The platforms follow a marketplace model and OLX does not own or manage inventory.
This online classifieds model allows OLX platforms to facilitate transactions with low costs and connect local buyers and sellers efficiently. The revenues come mainly from advertising and value added promotions for sellers on the platforms.
What is the business strategy of OLX Group?
OLX Group’s key business strategies include:
- Focus on high-growth emerging markets – OLX primarily focuses on emerging high potential markets like India, Brazil, Indonesia etc. where online classifieds have a lot of room for growth.
- Localization – OLX platforms are localized to cater to the needs and preferences of each specific market. Local teams drive localization.
- Mobile focus – OLX has adopted a ‘mobile first’ approach and its platforms are highly optimized for mobile usage. Over 80% of traffic comes from mobile devices.
- Trust and safety – OLX invests heavily in moderation practices, artificial intelligence and machine learning to maintain quality listings and safe user experience.
- Operational efficiency – OLX strives to drive operational efficiencies by centralizing and sharing technologies, processes and best practices across its platforms.
- Diversification – OLX is broadening its portfolio by getting into complementary businesses like online auto portals, real estate, jobs, payments etc.
OLX Group’s strategy is focused on sustaining growth momentum, expanding profitability, diversifying revenue streams and maintaining its leadership position in emerging markets.
Who owns OLX Group?
OLX Group is majority owned and controlled by the global consumer internet group PROsus N.V. PROsus has classifieds as one of its core segments and owns OLX Group through its subsidiary MIH Internet Holdings BV.
PROsus N.V. is a spinoff of South African multinational Naspers. In 2019, Naspers spun off its international internet assets into PROsus to list it on the Euronext Amsterdam exchange. PROsus owns a 73.2% stake in OLX Group currently.
The remaining 26.8% stake in OLX Group is held by OLX BV, which is jointly owned by OLX founders and original shareholders. So in summary:
- Majority owner – PROsus (73.2% stake)
- Other shareholders – OLX founders and original investors (26.8% stake)
Who are the founders of OLX?
OLX was founded in 2006 by a group of 4 internet entrepreneurs:
- Fabrice Grinda – French entrepreneur who was also an early investor in Alibaba Group.
- Alec Oxenford – Argentine entrepreneur who co-founded letgo and DeRemate earlier.
- Jordi Castello – Spanish entrepreneur who co-founded Letgo.
- Sachin Bhatia – Indian entrepreneur who co-founded Trashbox earlier.
This founding team identified the online classifieds opportunity in emerging markets and launched OLX in India and Brazil in 2006. It then expanded quickly across Asia, Africa and other markets.
How does OLX Group make money?
OLX Group makes money through the following key revenue streams:
- Advertising: OLX sellers have to pay for premium listings, spotlight ads, bump ups and other promotions to increase ad visibility. This advertising accounts for bulk of revenues.
- Value added services: Revenues earned from services like featured listings, cross-posting across multiple platforms etc.
- Classifieds listings: Sellers sometimes need to pay a fee to post their listings on OLX especially in categories like jobs, real estate or autos.
- Convenience services: OLX provides services like inspection, financing, delivery etc. for a fee in some markets.
- OLX Autos: Online auto portals charge dealers subscription fees for dealer listings and advertising.
In 2020, OLX Group had a consolidated revenue of 1.2 billion Euros, with a year-on-year growth of 16%. Its major markets like India, Poland, Brazil and Indonesia are fast growing and profitable.
How many employees does OLX Group have?
OLX Group has a large global workforce to support its operations and growth. As per latest estimates, the company has:
- Over 7500 employees worldwide
- Presence across 45+ countries
- Employees from 80+ nationalities
Some major employee hubs are located in markets like India, Poland, Portugal, Indonesia, Netherlands and others. OLX Group has a multinational workforce fluent in over 50 languages to power its global classifieds business.
Who are the main competitors of OLX Group?
OLX competes with both local and global players in the online classifieds space. Some of its major competitors include:
- eBay Classifieds Group – Operates Kijiji, Gumtree, Marktplaats and others
- Facebook Marketplace
- Amazon Marketplace
- Quikr
- Craigslist
- Wallapop
- Carousell
- MercadoLibre
- Locanto
- Yapo
However, OLX has been able to establish a leadership position in most emerging markets it operates in like India, Indonesia, Poland, Romania, Portugal etc. It competes both on brand awareness, technology and business model innovation.
What is the impact of OLX Group?
OLX Group has made a significant impact in the following ways:
- Enabled tens of millions of buyers and sellers globally to transact online.
- Provides livelihood to thousands through opportunities to earn money online.
- Environmental impact by increasing reuse of goods and reducing waste.
- Makes local goods and services easily discoverable boosting economies.
- Brings convenience and simplicity to classifieds through technology.
- Major employer especially for tech talent in emerging markets.
By facilitating exchanges in goods, services, automobiles etc. between people locally, OLX is driving commerce and transactions in a sustainable manner and having a meaningful socio-economic impact.
What is the future outlook for OLX Group?
The future outlook for OLX Group looks promising based on a few trends:
- Classifieds shifting online rapidly in emerging markets providing headroom for growth.
- Newer models like autos, real estate, jobs etc. gaining traction beyond general classifieds.
- Mobile commerce increasing enabling on-the-go transactions.
- Higher consumer trust in online marketplaces due to safety initiatives.
- OLX investing heavily in newer technologies like AI, ML, AR, VR etc.
- OLX platforms being positioned as social marketplaces beyond just classifieds.
- Initiatives in digital payments, logistics, analytics expected to add value.
OLX Group seems well positioned to capitalize on these trends due to its global scale, local playbook, innovative culture and technical capabilities.
Conclusion
OLX Group has emerged as a leading global classifieds player on the back of a solid online marketplace model focused on high-potential emerging markets. It has built trusted community marketplaces facilitating transactions in goods and services across thousands of categories. With classifieds activity moving online rapidly, OLX Group is poised for strong continued growth and profitability especially on mobile. The company is enhancing its platforms using technology and data analytics to add greater convenience and trust. With a strong understanding of local buyer-seller needs and a global playbook, OLX Group is expected to consolidate its leadership in classifieds in the future.