Carro, Southeast Asia’s largest Singapore-based online used-car marketplace, is preparing for a potential US initial public offering as early as 2026, according to sources familiar with the matter.

The company could raise up to US$500 million in proceeds and is aiming for a valuation of more than US$3 billion, the sources said.

If completed, this would be the largest Southeast Asian IPO in the US since Sea’s 2017 debut, and the third biggest Southeast Asian high-tech IPO in the US, according to LSEG data.

Founded in 2015, Carro operates a digital platform for buying and selling vehicles, and also offers insurance, financing, and after-sales services in several Asia-Pacific markets including Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong.

The IPO size and timing may change depending on market conditions, the sources said.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Marketplace businesses require sustained capital and time to reach profitability

Carro’s decade-long journey from startup to IPO readiness illustrates the extended timeline needed for marketplace businesses to achieve significant scale and profitability.

The company began with a $5.3 million Series A round in 2016, then raised $108 million across seven funding rounds by 2019, eventually securing over $1 billion in total funding 12.

Despite this substantial capital injection and achieving over $500 million in transaction volume by 2018, Carro is only now projecting $100 million in annual EBITDA by March 2026, nearly 11 years after its founding 3.

This timeline reflects the inherent challenges of marketplace businesses, which must simultaneously build both supply and demand sides while investing heavily in technology, geographic expansion, and ancillary services like financing and insurance.

Carro’s strategic approach included acquisitions and investments such as the $30 million stake in Malaysian startup myTukar in 2019, demonstrating how marketplace companies often need to buy market share and consolidate fragmented regional players to achieve the scale necessary for profitability 3.

2️⃣ Singapore-based companies benefit from geopolitical shifts in cross-border listings

Carro’s timing for a U.S. IPO coincides with a period when Singapore-based companies are emerging as attractive alternatives for American investors seeking Asian market exposure amid U.S.-China tensions.

Recent data shows that geopolitical tensions are reshaping IPO strategies, with Chinese companies facing increased regulatory scrutiny and compliance hurdles, including mandatory CSRC filings that often cause delays 4.

Recent Carro developments