Carsome petitions Malaysian minister in bid to raise $55m before IPO

Photo credit: Carsome

Malaysian unicorn Carsome is planning two funding rounds this year as it gears toward an IPO. And it’s asking a Malaysian minister to help it achieve its goal.

In a March 27 letter sent to Deputy Finance Minister Steven Sim, the company implored the official to recommend the firm as an investment to Malaysian government-linked entities.

In the letter seen by Tech in Asia, Carsome said it would do “an internal bridging round and an external mid-year fundraise” this year, which would be its “last” ones before a planned IPO.

The company wrote that while it is “known widely” as a Malaysian unicorn, investments from local government-linked investors “only amount to less than 10% of our cap table. This is far overshadowed by the enthusiasm and support from foreign-owned funds.”

Carsome is pursuing the bridge investment with existing investors. Qatar Investment Authority, as well as Temasek-backed firms 65 Equity Partners and Seatown Holdings, will be leading the US$45 million round.

But the used-car platform said the three VC firms would like “to see a commitment of US$10 million” from “other existing Malaysian institutional investors.”

Deputy Finance Minister Steven Sim (white shirt) visiting Carsome’s regional headquarters in Petaling Jaya, Malaysia in February. / Photo credit: Carsome

Tech in Asia understands that Carsome has closed its US$45 million fundraiser and is now looking to complete the remaining US$10 million from local investors.

Carsome said it hopes that the Finance Ministry “can strongly recommend” other Malaysian government-linked financial institutions and investment companies to participate in an external fundraise later this year.

Names mentioned in the letter are: Khazanah Nasional, Employees Provident Fund, Armed Forces’ Fund Board, Retirement Fund, Petronas Ventures, and Sime Darby, among others. All these entities fall under the purview of the Finance Ministry.

Khazanah Nasional is the country’s sovereign wealth fund while the rest are state-owned financial investors except for Petronas Ventures and Sime Darby, which are corporations linked to the government.

The letter doesn’t state when or where Carsome intends to list, but the firm told Sim that these funding rounds, along with participation from state-linked entities, “will be key in determining Carsome’s future direction and investments locally.”