Prosus' Strategic Expansion in the European Auto Marketplace: Unlocking Long-Term Value Through the La Centrale Acquisition

In September 2025, Prosus's OLX Group made a bold move to reshape the European auto marketplace by acquiring La Centrale, a leading French vertical motors classifieds platform, for €1.1 billion in an all-cash dealProsus's OLX Group agrees to acquire La Centrale, a leading motors classifieds platform in France^[1]. This acquisition marks OLX's entry into Western Europe and positions the company to capitalize on structural opportunities in France's used car market, where professional dealers account for 36% of salesAmsterdam’s Prosus-owned OLX acquires France’s La Centrale for €1.1B^[2]. With La Centrale's strong brand recognition—serving 4.5 million monthly unique visitors and managing 350,000 listings—OLX is poised to leverage its AI-driven technology to enhance user experience, attract dealers, and drive revenue growthOLX Group reports strong FY 2025 results with 18% revenue growth and 61% profit uplift year-on-year^[3].

Strategic Alignment with Market Trends

The European auto classifieds market is undergoing rapid digital transformation, with the used car segment projected to grow at a 4.6% compound annual growth rate (CAGR) from 2025 to 2034Europe Used Cars Market Size, Global Trends 2025-2034^[4]. La Centrale's historical performance, including a 12% CAGR in classifieds revenue, underscores its ability to thrive in this evolving landscapeProsus Ignite – Transforming into the largest European Internet Company^[5]. Prosus CEO Fabricio Bloisi emphasized that the acquisition aligns with the company's broader ambition to build a European e-commerce ecosystem powered by AI innovationOutlook on 2025 megatrends for online classifieds^[6]. By integrating OLX's advanced algorithms with La Centrale's local expertise, the combined entity aims to streamline transactions, improve trust, and scale dealer partnerships—a critical advantage in a market where Certified Pre-Owned (CPO) vehicles and subscription models are gaining tractionEuropean Auto Market 2025: Winners & Losers^[7].

Competitive Dynamics and Market Positioning

France's automotive market, while facing a 7.1% decline in year-to-date sales as of August 2025, remains structurally attractive due to its focus on higher-value vehicles and digital adoptionFocus2move| French Vehicle Market - Facts & Data^[8]. La Centrale's specialization in this segment, coupled with OLX's existing dominance in Central and Eastern Europe, creates a unique opportunity to consolidate market share. Competitors like AutoScout24 and Mobile.de in Germany, and Cazoo in the UK, highlight the competitive intensity of the sectorBYD Overtakes Tesla in European EV Sales Amidst Shifting Market Dynamics^[9]. However, OLX's AI-driven tools—such as personalized search, fraud detection, and automated pricing—position it to differentiate itself in a market increasingly dominated by data-driven platformsBetting on the Application Layer: How Prosus Is Building AI Ecosystems^[10].

Financial and Operational Synergies

OLX's FY 2025 financial performance—18% revenue growth and a 35% aEBIT margin—demonstrates its ability to scale profitablyOLX Group reports strong FY 2025 results with 18% revenue growth and 61% profit uplift year-on-year^[11]. The acquisition of La Centrale, which has shown operational improvements post-restructuring, is expected to amplify these metrics. Prosus's CEO Christian Gisy outlined a vision to achieve 50% profit margins by leveraging AI to reduce costs and enhance monetization in core categories like Motors, Real Estate, and JobsProsus’ OLX Group acquires La Centrale for €1.1bn^[12]. Additionally, the deal aligns with Prosus's broader AI ecosystem strategy, which includes investing in AI-native startups and deploying large commerce models to personalize user experiencesProsus Ignite – Transforming into the largest European Internet Company^[13].

Risks and Mitigation

While the acquisition offers significant upside, challenges such as regulatory scrutiny in France's employee consultation process and the need to integrate diverse tech stacks remainEconomic and Market Report: Global and EU auto^[14]. However, OLX's track record in scaling AI-driven platforms—evidenced by 55 deployed AI use cases across its ecosystem—suggests a robust approach to overcoming these hurdlesOLX Group reports strong FY 2025 results with 18% revenue growth and 61% profit uplift year-on-year^[15]. The company's focus on B2C services, which accounted for 60% of its FY 2025 revenue, further insulates it from volatility in the broader automotive sectorProsus: OLX to focus on b-to-c services to boost monetization^[16].

Conclusion

Prosus's acquisition of La Centrale represents a calculated bet on the future of European e-commerce. By combining OLX's AI capabilities with La Centrale's local market dominance, the company is well-positioned to capture growth in a fragmented, digitizing industry. With the European used car market set to expand to $725.3 billion by 2024 and beyondEurope Used Cars Market Size, Global Trends 2025-2034^[17], and Prosus targeting a $200 billion valuation by 2028Prosus Ignite – Transforming into the largest European Internet Company^[18], this move underscores a strategic pivot toward high-margin, technology-enabled ecosystems. For investors, the acquisition signals a commitment to innovation and long-term value creation in one of the world's most dynamic markets.