Carro heads Down Under. Is an IPO on the horizon?

Carro, an online automotive marketplace based in Singapore, is making its first acquisition in Australia in a move that could help accelerate its path to a possible IPO.

The company is acquiring a “sizable” local automotive business in the country, and the deal is expected to close before the end of 2025, co-founder and CEO Aaron Tan said at this year’s Tech in Asia Conference in Jakarta.

Photo credit: Carro

Although he did not disclose the deal’s value and specifics, he said the acquisition will follow Carro’s approach to Hong Kong’s Beyond Cars.

Carro helped the second-hand car platform expand through capital support, tech integration, and operational know-how after acquiring it in 2024.

Tan shared that once the acquisition is done, the Australian firm is expected to contribute around 20% of Carro’s overall revenue within the first year.

He added that Carro will look at a possible IPO after the company reaches earnings (EBITDA) of US$100 million.

The Singapore-based company is currently hoping to close 2025 with US$80 million in EBITDA. Its 2024 EBITDA was around US$40 million.

Carro cut its operating losses by 92% to US$6.7 million in its financial year ending March 2024. While it posted a year-on-year decline in revenue growth of about 6% to US$781 million, gross profit margins improved from 8% to 12% during the same period.

See also: Carro swaps growth for profitability, as losses fall 92% in FY24

Tan credited Carro’s growth to financial discipline.

“Many competitors went all out to burn money, but we didn’t,” he said.

With Australia’s used-car market projected to reach US$81 billion by 2030, the company’s expansion appears well-timed.

Carro’s entry into the country follows a string of earlier acquisitions across Asia, including a 50% stake in Indonesia-based Mitra Pinasthika Mustika Rent in 2022 and Thai classified ads platform Kaidee in 2023.

Zero pressure on IPO