Singapore’s Carro secures $110m in debt financing, additional equity

Singapore-based car marketplace Carro said it has secured S$150 million (US$110.5 million) in debt financing facilities as well as additional
equity, backed by investors such as Mitsubishi Corporation and MS&AD Ventures.

Photo credit: Carro

The development comes as the company hit a record high in monthly revenues, claiming to achieve over 500% year-on-year revenue growth in September. Carro also said in a statement that it’s on track to reach S$1 billion (US$736.7 million) in revenue in two years.

The five-year-old company attributed this growth to a surge in digitalized car purchases amid the Covid-19 pandemic. Carro chief financial officer Ernest Chew said they expect this upward trend to continue as more customers in Southeast Asia seek online solutions.

“Covid-19 has pushed the envelope for innovation in the auto market; the current economic slowdown means customers are looking for value-for-money cars but are also concerned about their safety,” he added.

Carro claims to have remained EBITDA (earnings before interest, taxes, depreciation and amortization) positive in the last three quarters, logging its highest monthly EBITDA during the pandemic.

Founded in 2015, Carro connects private sellers and dealers to potential car buyers through its full-stack solution. It started its regional expansion into Thailand and Indonesia in 2017, offering in-house financing, after-sales services, and flexible vehicle ownership solutions.

In September 2019, the company entered Malaysia with a US$30 million injection into a local car-bidding platform, MyTukar. Carro also raised US$30 million last year on top of an earlier US$60 million round to backroll its acquisition of Indonesia’s e-classifieds platform, Jualo.