Singapore’s used car marketplace Carro snaps up $712k funding to make guarantees new norm

Carro, a used car marketplace in Singapore, today announced it raised over S$1 million (roughly US$712,000) in seed funding from Alpha JWC Ventures and other investors.

The startup says it will use the money to expand in Southeast Asia. Tech in Asia asked for more details about its funding and plans, and we’ll update this story when we hear back.

Carro connects used car sellers and buyers through its web and mobile platform, essentially cutting out middlemen such as dealers and mechanics. Using a proprietary algorithm, the company determines the most favorable prices for sellers.

It promises more transparency in an industry where sellers “often receive low-ball offers from dealerships, and buyers overpay or end up buying a lemon.”

While this business isn’t new, Carro claims to provide “unique” programs that set it apart from others.

It guarantees to buy a car from the seller at the offer price they’ve set if there are no buyers 30 days after the listing.

It also has the cars thoroughly inspected by an in-house team of professional mechanics. Any defect is clearly marked on each listing. This is to assure buyers that the cars being sold are still in shape. The cars also come with a one-year warranty.

Carro has certified over 100 vehicles so far, and is on track to hit more than S$10 million (about US$7.1 million) in run-rate gross merchandise value within three months of its launch in July.