Carro eyes dual listing, Australia expansion plans

Carro, Southeast Asia’s largest online used-car marketplace, is considering a dual listing and plans to expand into Australia, CEO Aaron Tan told Reuters.

The company, backed by Temasek and SoftBank, operates across Southeast Asia and parts of East Asia. It aims to acquire two to three companies as early as next quarter.

Carro has not yet decided between the US, Hong Kong, or Singapore for its potential listing and is in talks with banks including HSBC and UBS.

Tan said the IPO timing will depend on meeting near-term financial targets. Carro offers vehicle sales, insurance, financing, and after-sales services.

It entered Hong Kong last year by acquiring Beyond Cars, later rebranded as Carro.

The company is also using AI to support sales, inspections, and back-end roles, which has reduced technology costs by 20% to 30%.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Carro’s pre-IPO expansion mirrors successful regional tech playbook

Carro’s strategy of pursuing acquisitions and geographic expansion before going public follows a proven Southeast Asian tech company approach to maximize valuation.
The company plans 2-3 acquisitions by next quarter while expanding into Australia, building scale before pursuing its $3+ billion IPO target1.
This mirrors their successful 2019 expansion into Malaysia through the $30 million acquisition of myTukar, which helped triple transaction volumes to over $500 million2.
Australia presents a compelling target market with automotive sector growth projected at 5.9% CAGR through 2034, driven by EV adoption and digital platform demand3.
CEO Aaron Tan’s disciplined approach, only listing once achieving $120-150 million EBITDA visibility, reflects lessons from the challenging Southeast Asian exit environment where venture funding dropped nearly 80% from 2022 peaks4.

Southeast Asian tech companies increasingly pursue dual listings amid challenging exit landscape

Carro’s consideration of dual listing across multiple markets reflects broader regional trends as Southeast Asian companies seek access to larger capital pools.
The challenging exit environment in Southeast Asia, with significantly fewer successful IPOs compared to other regions, is driving companies to consider U.S. and other international listings5.
If successful, Carro would become the first major automotive tech startup from Singapore to list in the U.S., potentially marking the largest Southeast Asian U.S. listing since SEA’s $989.3 million debut in 20171.
The dual listing trend is gaining momentum among ASEAN companies seeking enhanced investor access and liquidity through mechanisms like Depositary Receipts6.
Singapore’s funding environment showed significant year-over-year growth, making it an attractive alternative listing venue alongside traditional U.S. and Hong Kong options7.