Catcha Group’s iCar Asia scores $13m, will raise $4m more

The morning commute. Photo credit: Tom Hilton.

Malaysia-based iCar Asia, which runs automotive marketplaces in three countries, has raised US$13.2 million via the sale of shares to private investors, the company announced in a disclosure to the Australian Securities Exchange today.

Its major shareholder, Catcha Group, and a non-executive director also committed to inject US$4.2 million more into the company over the next two months, subject to iCar board’s approval. That will bring the total financing round to US$17.4 million.

“The funds raised will be used to invest in the long-term growth strategy of the company, as iCar Asia looks to capitalize on the growth of car ownership spurred by the increasing purchasing power of the emerging middle class in Southeast Asia, coupled with the increases in online new car advertising spend,” the company said in a statement sent to Tech in Asia.

It will also use the money for product development, hiring more sales people, and nationwide marketing to extend the business beyond the greater metropolitan areas of the markets where it is present.

iCar’s network includes Carlist and LiveLifeDrive in Malaysia; One2Car, ThaiCar, and Autospinn in Thailand; and Mobil123 in Indonesia. Together, the marketplaces currently have 6.1 million buyers and sellers in the region per month.

iCar expects car ownership in Southeast Asia to continue to grow, with GDP per capita across its markets now reaching about US$4,300 and growing over 4 percent per year.

“Vehicle ownership is currently at a level of 113 vehicles per 1,000 people across iCar’s markets, compared with 730 vehicles per 1,000 in Australia. Furthermore, the percentage of new car advertising budgets spent online in Malaysia, Thailand, and Indonesia is just 10 percent compared with 47 percent in Australia,” it said.

Converted from Australian dollars. Rate: US$1 = A$1.33.

(Updated at 7 pm, September 2 to include iCar’s press statement.)