Carro, JC&C join forces in $60m automotive strategic partnership

Carro CEO and founder Aaron Tan (left) and JC&C’s managing director for Direct Motor Interests, Wilfrid Foo / Photo credit: Carro

Carro, the Singapore-based auto marketplace, has sealed a strategic partnership worth over US$60 million with investment firm Jardine Cycle & Carriage (JC&C).

The companies will combine their respective capabilities and ecosystems in automotive retailing, especially in used cars and aftersales, according to a statement.

Singapore-listed JC&C has several subsidiaries and associates in the automotive industry, including Indonesian auto giant Astra and Vietnam’s Truong Hai Group.

Carro and JC&C have declined to comment on the basis of the US$60 million figure.

However, in an email interview with Tech in Asia, Carro CEO and founder Aaron Tan noted that JC&C’s network will help the platform gain access to “good quality inventory which we otherwise could not have access to.”

As part of the deal, JC&C will have a stake in Carro and a representative on its board. Likewise, the unicorn will have an equal-value stake in JC&C subsidiary Republic Auto, a used-car dealer based in Singapore.

“Systems will be key” in integrating Carro and Republic Auto, according to Tan. Republic Auto will provide access to its premium used-car inventory while Carro will transform the dealership firm’s online services.

Carro and JC&C will also form an aftersales joint venture (JV), initially focusing on Singapore and Malaysia.

Tan explained that the JV is an extension of Carro Care, the company’s existing aftersales business. The JV will launch a multibrand aftermarket workshop business that combines offline and online services.

Carro previously stated that it had recorded its highest-ever EBITDA of US$4 million in the financial year (FY) ending March 2023. Furthermore, it expects to achieve a 10x increase in EBITDA in FY 2024.

Apart from its home market, Carro operates in Malaysia, Indonesia, Thailand, Japan, and Taiwan.

Tan said that his company has had numerous discussions with potential partners in Vietnam and the Philippines, but it does not have any plans for immediate expansion.

In February, Carro secured fresh funding from insurtech firm ZA Tech as part of a joint venture deal.