Carousell triples revenue to $40.6m in 2020

Simon Huang contributed to this story.

If all goes well, Carousell may sail through 2022 emerging as a US-listed company valued at US$1.5 billion.

Its recently released numbers for its financial year ending December 31, 2020 offer a glimpse into the firm’s performance in the lead-up to its debut on the public market, which might happen as soon as this quarter. Carousell declined to comment on rumors or speculations on its listing plans.

(From left) Carousell co-founders Quek Siu Rui, Marcus Tan, and Lucas Ngoo / Photo credit: Carousell

In 2020, the online classifieds giant reported a revenue of US$40.6 million, a more than 3x increase from 2019. Its acquisition of 701Search – the Telenor-owned marketplace behind Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar – likely drove a bulk of that growth.

At the same time, Carousell’s losses before taxes deepened from US$42.2 million to US$63.9 million as its employee headcount ballooned. Economic uncertainty due to the Covid-19 pandemic also weighed on its performance in markets like Myanmar, leading to impairment losses.

That said, a large chunk of its losses are non-cash-based. Its net cash flow from operating activities actually improved by US$10 million to negative US$32.3 million.

Carousell acquired 701 Group in November 2019. If we consider the full impact of 701 Group’s full revenue for that year – US$22.1 million – Carousell would have reported a revenue of US$37.8 million in 2019 on a group level. On this basis, Carousell’s revenue grew by 7% between 2019 and 2020.

See also: Unpacking Carousell’s 2019 financial numbers

According to the classifieds giant, its performance varied from market to market, depending on how strict lockdowns were.

“We saw some markets grow rapidly with double and triple digit growth rates, while some markets were more impacted due to strict lockdowns that prevented businesses from operating,” a spokesperson tells Tech in Asia.

Growth by acquisition has its costs

Aside from 701 Group’s significant revenue contribution, Carousell is increasingly feeling the weight of running a sprawling business stretching across entities.

These include online automotive platform OneShift and sneaker marketplace Ox Street, which Carousell acquired in 2018 and 2021, respectively. There’s also Ox Luxe, a buying, selling, and consignment marketplace for pre-owned luxury goods, which spun out of the group at the end of last year.

More benefits to be realized