Carousell’s 2023 revenue up by 40%, driven by 2x recommerce sales

Carousell Group, the Singapore-based ecommerce platform, wants to turn silver into gold.

The company is growing its recommerce business to advance its mission of “making secondhand the first choice,” a spokesperson told Tech in Asia.

There has been a “transformative surge” in recommerce in recent years, fueled by digitalization, financial instability and an increasing commitment to sustainability, according to market research firm Euromonitor.

Indeed, Carousell’s 2023 revenue grew strongly, thanks to a doubling of sales in recommerce.

Meanwhile, it managed to keep a lid on costs, which went up by only 6% from 2022 to 2023. As a result, its losses narrowed by 40% for the year.

Apart from Singapore, Carousell also has offices in Hong Kong, India, Indonesia, Malaysia, the Philippines, Taiwan, and Vietnam.

Rise of recommerce

JJ Ang, Carousell’s chief financial officer, said the company’s 2023 revenue is 40.5% higher than a year ago, thanks to its strategy of focusing on “top growth categories.” These categories include cars, luxury, mobile, property, jobs, and services, and “rest of goods.”

Ang noted that a “huge part” of the revenue increase was due to Carousell’s recommerce business, which contributed to 46% of revenue – or US$53.3 million – in 2023.

Other sources of revenue were classifieds advertising, direct media advertising, and commission and others, according to the Carousell spokesperson.

The company has gone all in on the recommerce trend, taking steps aimed at making transacting in secondhand items more trusted and convenient.

Photo credit: Carousell

These measures include the Certified program, which ensures that preowned items have been thoroughly checked for quality and authenticity. Carousell says that a car certified under the program, for example, would have undergone a 119-point inspection and comes with perks such as a 12-month warranty and a complimentary replacement car, among others.

The company has also introduced a Sell to Platform program, with users selling directly to Carousell for cash instead of finding a buyer on the platform.

Carousell offers an on-platform payments system as well, where payments are made digitally and only disbursed to sellers after buyers confirm that orders were received in good condition.

Six-year runway