Lokesh Choudhary · · 2 min readCarro bags $55m loan from HSBC’s $1b ASEAN Growth Fund
Team Carro / Photo credit: Carro
Used-car marketplace Carro has secured a US$55.5 million multi-currency loan from HSBC to fund its fintech arm, Genie Financial Services. According to a statement, the Singapore-based firm is the first HSBC client to access the bank’s US$1 billion ASEAN Growth Fund.
Genie Financial Services, which offers financing for Carro’s used-car buyers, operates in Singapore, Malaysia, Indonesia, and Thailand. IPO-bound Carro, present in seven markets, recently entered Hong Kong and Japan.
Carro said that as of the financial year ending March 2024, its revenue is close to US$1 billion, with an EBITDA growth of over 11x.
Meanwhile, Genie Financial Services has a loan book of over US$370 million with non-performing loans of under 0.5%, said Carro CEO Aaron Tan in a statement.
HSBC’s loan adds to Carro’s existing liquidity of around US$259 million in the latest financial year, the firm says.
In April, it was reported that Carro was looking to raise approximately US$100 million, which would potentially bring the company’s valuation to over US$1.5 billion.
At the time, Tan told Tech in Asia that the company intended to secure the capital over the next few months. The primary use of these funds will be for expanding into new markets, with a significant portion allocated to M&A activities in Hong Kong and Japan.
See also: How an SG regtech firm won over StanChart and HSBC with ‘ChatGPT for banks’
Editing by Putra Muskita and Lorenzo Kyle Subido
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