OLX, which for all intents and purposes seems to be the same thing as craigslist, except with no nearly as many users or posts, recently raised $13.5 million. This really just makes no sense to me as even craigslist only makes an esitmated $80 million per year in revenues. That and the fact that OLX gets about 1/6000th of the traffic of craigslist accoridng to alexa. Yes, 1/6000th. Even if craigslist were to start charging for all of the job postings in its networks, one analyst estimates the company would only make $150MM in revenue.
OLX is different from craigslist in that it focuses primarily on markets outside of the United States and has bought a stake in a Chinese classified site. Nevertheless, with competition from craigslist moving international, it's hard for me to imagine how OLX will be able to pay its investors back.
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