When two used-car marketplaces collide

Hello readers,

Rivalries make for great stories. Just think about some notable Hollywood rivalries we’ve seen on the silver screen – the Jets and the Sharks in West Side Story, Spider-Man and the Green Goblin, Harry Potter and Draco Malfoy, Thor and Loki… I could probably go on, but you get my drift.

Rivalries are also pretty common in the startup world. There are plenty of problems that companies set out to solve, and sometimes firms overlap in their services, solutions, and target markets, leading to some intense competition.

That’s the case for Carro and Carsome. The two used-car marketplaces are undoubtedly rivals, and things between them are starting to heat up especially in Malaysia, where the former has gained a foothold primarily through a US$30 million injection into local player myTukar.

Today we look at,

• How things are getting heated between Carro and Carsome
• What fresh funding will do for this HR management platform
• Other newsy highlights such as Funding Societies’ ESOP buyback program and The Fund’s entry into India

Premium summary

Carro vs Carsome

Image credit: Timmy Loen

Used-car platforms Carro and Carsome have similar business models, compete in overlapping markets, and even raised their seed rounds within months of each other. Now, Malaysia has become a vicious battleground for the two companies, according to sources who spoke to Tech in Asia.

• Turf wars A point of divergence between the two firms lies in how they’ve expanded into each other’s home territory. While Malaysia-based Carsome’s presence in Singapore – Carro’s home market – has so far been limited, the same cannot be said for Carro’s foray into Malaysia. The Singapore-based firm has gained a foothold in the country through a US$30 million injection in local player myTukar.

• Head to head: The two automotive marketplaces are fighting to attract not just car buyers but also dealers through the use of similar marketing campaigns offering cash bonuses. The same goes for talent – in recent months, Carsome has also brought several myTukar senior executives into its ranks, something that a myTukar insider describes as an “ongoing modus operandi.”

• It’s getting hot in here: Compared with Carro, Carsome has traditionally spent more money on marketing, though Carsome has had higher revenues than Carro thus far, which may explain the difference in spending. However, both companies have since raised several hundred million dollars in new funding, and their focuses have diverged, with Carsome largely staying within its lane and Carro eyeing the digital banking space. One thing’s for sure, though – competition will remain stiff between the two firms.

Read more: Inside Carsome’s and Carro’s all-out war in Malaysia

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