Carousell revenue growth in slow lane even as losses narrow

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Hi there,

Five years ago, we bought our car from a seller after connecting via a Facebook post. That was the only time I dabbled in recommerce. The idea of buying secondhand clothes or shoes still doesn’t come naturally to me.

But the market for used goods has been going from strength to strength. In the US alone, it was a US$160 billion opportunity in 2021.

In the first Big Story this week, my colleague, Melissa, brings you Carousell’s financial report card, where the firm emphasized recommerce as its next lever for growth. While classifieds continue to make up nearly 70% of the Singapore-based company’s topline, it believes revenue from recommerce could shoot up in the near future.

Coming back to my car story, since it’s been five years, we decided to sell it off and upgrade to a bigger vehicle this September. We chose to sell it on Cars24, an ecommerce marketplace for cars as it offered us the best price and convenience.

Cars24 co-founder and CEO Vikram Chopra in a recent interview with Moneycontrol said the company is “almost profitable.”

Malaysian used-car marketplace Carsome is also on a similar path. In the second Big Story this week, my colleague, Emmanuel, exclusively speaks to Carsome CEO Eric Cheng on the tough decisions it has taken to reach profitability.

In the Hot Take, I analyze the sudden rise of Temu, the new shopping app sensation in the US.

– Samreen

THE BIG STORIES

1️⃣ Carousell posts $49.5m in revenue in 2021 as growth slows

Image credit: Timmy Loen

In 2021, the classifieds giant laid foundations for recommerce, which will pave the way for its next phase of growth as it heads toward profitability.

2️⃣ Can Carsome break even in 2023?

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI