Malaysian car marketplace Carsome bags $50m to expand in Southeast Asia

Southeast Asian used car trading platform Carsome has raked in US$50 million in a series C round from a slew of investors to solidify its position as a market leader in the region.

Eric Cheng, co-founder and CEO of Carsome / Photo credit: Carsome

The round, which involved a mix of equity and debt investments, included participation from new investors such as Japan’s MUFG Innovation Partners, Daiwa PI Partners, Endeavor Catalyst, and Ondine Capital. Existing investors, including Gobi Partners and Convergence Ventures, also chipped in, alongside other undisclosed new investors, according to a statement.

Founded in 2015, Carsome provides a one-stop solution for car sellers and dealers, offering services such as vehicle inspections, ownership transfers, instant payments, and easy paperwork. The startup said it moves 40,000 cars a year, reaching more than US$300 million in transaction value, excluding all loans and financing deployment.

It plans to use the new funds to expand into more cities in Southeast Asia, make key management and tech hires, and offer financing products to dealers and consumers through multicountry roll-outs over the next 12 months.

As part of the investment, the startup will be working with MUFG and its subsidiaries in Southeast Asia to provide financing access for dealers and consumers, according to a statement.

To date, Carsome’s platform supports more than 6,000 dealers across over 50 cities in Malaysia, Thailand, Indonesia, and Singapore. The company also claims to be operationally profitable in Malaysia and targets profitability in the remaining markets by the end of next year. It employs over 700 employees across the region.

In March 2018, the company raised US$19 million in a series B round led by Burda Principal Investments, alongside Gobi Partners, Convergence Ventures, Indogen Capital, InnoVen Capital, and Lumia Capital. Then, it secured an additional US$8 million in August 2018.