What is Frontier Car Group (FCG)? Frontier Car Group (FCG) Review

Frontier Car Group (FCG) is a Berlin-based startup that specializes in providing a trading platform for a wide range of used cars in emerging markets and has operations in Nigeria, Mexico, Chile, Pakistan and Indonesia.

About FCG

FCG was founded in April 2016 by serial entrepreneur Sujay Tyle, emerging markets expert Peter Lindholm and experienced team leader André Kussmann. In addition to its home base in Berlin, Frontier is also active in Chile, Mexico, Pakistan and Turkey, with a total of 200 employees.

FCG has been funded by Naspers/OLX and has expanded into markets such as Nigeria, Mexico, Pakistan and India, making buying and selling cars more efficient through technology, infrastructure creation, access to capital and innovative business models, so that all stakeholders can benefit from our impact.

Service Content

1. Platform and Technology

At the heart of Frontier's operations is a suite of multi-platform digital applications that facilitate the purchase of used cars and their subsequent sale to a network of dealers in the operating marketplace. From its technology and design center in Berlin, Frontier is digitizing the automotive sales sector to adapt to an increasingly connected society.

2. Infrastructure Creation

Since its founding in April 2016, Frontier has opened operational headquarters in five markets, established more than 100 inspection centers, built warehousing and storage capabilities for $100 million in merchandise, and developed innovative supply chain solutions that have revolutionized the way cars are moved and traded in some of the world’s largest emerging markets.

3. Financial management

Frontier Car Group is pioneering new vehicle financing solutions targeting small and medium-sized industry operators and attracting consumer customers in markets previously underserved by traditional lenders. FCG is leveraging the platform and physical network to deliver innovative B2B and B2C financial products.

Operational Model

Frontier is a C2B/B2B platform, and its supply mainly comes from individuals, channel dealers, dealers, etc. First, the seller quotes the price, the platform will inspect the vehicle at the inspection center, purchase it with its own funds and put it on the platform. The dealer as the buyer then bids online and purchases the used car with the Frontier inspection certificate.

Team situation

Frontier Car Group's team consists of more than 600 employees in the five current operating markets, with additional staff in Sweden, the United States and the headquarters in Berlin.

Financing

-In June 2017, Frontier Car Group successfully completed a round of financing of US$22 million, led by Balderton CAPItal, EchoVC+ and TPG/Satya, and followed by NEA, Partech Ventures and other well-known global companies.

-In May 2018, Frontier announced that it had received $58 million in Series B financing, including $41 million in equity financing and $17 million in debt financing, led by Balderton Capital and TPG Growth, and followed by Fraser McCombs Capital and Autotech Ventures.