Car wars: Singapore’s Carro vs. Malaysia’s Carsome

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Hi readers,

When Tesla announced that it was setting up shop in Singapore, I jumped with joy. Not because I’m a fan of its car’s swag or I have the money to buy one (I don’t), it’s simply because I can’t drive and Tesla’s self-driving technology sounded perfect for me. But alas, even self-driving cars still require a driver with a license.

While I still hope to man a self-driving car, that’s a dream for the future. As someone who’s saving money for a house, I will probably get my first car from a used-car marketplace, like many of my friends in Singapore have. Well, that is if I pass my fourth try at the driving test.

Today we look at:

• The race between Carro and Carsome in the US$61.1 billion used-car industry
• The social commerce startup that banked US$144 million
• Other newsy highlights such as AirAsia’s and Zomato’s plans to go public

PREMIUM SUMMARY

Car wars: Carsome and Carro’s race to the top

Forget about the nasi lemak rivalry between Singapore and Malaysia. There’s a new feud in town and it’s between two used-car marketplaces: Singapore’s Carro and Malaysia’s Carsome. Both of them are what locals would call “same same, but different”. Here’s why.

• Same same: Not only did Carro and Carsome get established in the same year, both have identical business models, operate in the same markets, and have used similar tactics such as hiring someone to stand outside its rival’s office with a signboard to lure its customers. Both also work with car dealerships and offer financing, with the latter’s availability able to either make or break deals.
• Different: Both companies primarily help customers buy and sell cars and have launched brick-and-mortar centers to tap into a customer base that likes to get a feel of the car by “kicking tires.” Carro is more diversified, however, with measures such as insurance being customized according to customer behavior and usage patterns. Carsome, on the other hand, has been more focused on developing its core business, improving its inspection and pricing.
• Keep the show on the road: Carro became a unicorn last month and plans to go public in the US within two years. Carsome is also believed to be on the unicorn track and is considering going public in the US via a merger with a special purpose acquisition company. Who will cross that finish line first?

Read more: Carsome and Carro: A neck-and-neck race to transform how people buy cars

STARTUP SPOTLIGHT

Tiger Global makes another move in India

Indian social commerce startup DealShare has raised US$144 million in its latest funding round at a valuation of US$455 million. Like many of the funds raised in India these days, this was led by Tiger Global along with investors WestBridge Capital, Alpha Wave Incubation, and Z3Partners.

Show me the money: How unit economics works