Malaysia’s iCar Asia to acquire Carmudi Indonesia for $3m

Malaysia-based automotive marketplace iCar Asia has inked an agreement to acquire Rocket Internet-backed Carmudi in Indonesia for US$3 million.

Photo credit: Pxhere

The acquisition is expected to close around October 15 upon finalization of paperwork, according to a statement.

With the deal, both companies will be able to provide an enhanced advertising platform for the Indonesian automotive industry. It will also allow Australia-listed iCar Asia to leverage Carmudi’s leading position in the used car market and expand its business in the sector.

Carmudi Indonesia’s website currently generates roughly 2 million visits per month, while iCar Asia sees about 6 million visits monthly. The firm’s websites have a 20% overlap in audiences, according to a statement, citing data from Similarweb.

Kuala Lumpur-based iCar Asia is focused on developing and operating automotive portals in Malaysia, Indonesia, and Thailand. In its home country, it operates Carlist.my, LiveLifeDrive.com, and CarlistBid. In Indonesia, it runs Mobil123.com, Otospirit.com, and Mobil123Bid.

The combination of the two businesses is expected to more than double iCar Asia’s revenue in Indonesia and allow both firms to break even in 2020, with iCar Asia working to break even on its EBITDA this year, according to the statement.

Another automotive marketplace looking to capitalize on the Indonesian market is Singapore-based Carro. The company recently raised an additional US$30 million on top of an earlier US$60 million raise in an extended series B round to bankroll the acquisition of Indonesian consumer-to-consumer marketplace Jualo.

Carro previously said that it has been “aggressively” expanding in Indonesia and Thailand, growing by 100% month on month in both markets.

See also: Carro, the ‘Alibaba of cars’, is growing fast and near break-even