Big names lead US$60M investment into Singapore automotive marketplace Carro

Carro, an online marketplace for buying and selling used cars in Southeast Asia, announced today it has raised a US$60 million Series B round led by SoftBank Ventures, Insignia Ventures Partners and B Capital Group.

Previous investors Venturra Capital, Singtel Innov8, Golden Gate Ventures and Alpha JWC participated in the Series B.

“We greatly appreciate the continued support from a growing investor base,” said Carro CEO Aaron Tan in a statement.

“The expertise they bring to the table will allow us to continue scaling up our online marketplace as well as Genie Financial Services, Carro’s own financial services company, which is already profitable.”

With a presence in Indonesia, Singapore and Thailand, the investors are making a bet that as people grow more comfortable with e-commerce they will move towards buying large-ticket items like cars. To date, Carro has seen more than US$250 million worth of automobiles sold on the platform.

The money will be used to “double-down” on the marketplace and financing features.

Carro’s financing feature is called Genie and the startup says they have helped transact over US$100 million worth of loans.

The startup also has warranty and roadside assistance services plus a new product called Carro Express which will help people buy/sell cars in less than an hour.

With the investment, the company’s board will be getting a shakeup with the additions of Sean Lee from SoftBank, Tan Yinglan from Insignia and Eduardo Saverin from B Capital.

“We are excited to partner with Carro as we believe in its full stack automotive ecosystem approach, which offers products and services that are complementary to each other, leveraging network effect and economies of scale,” said Tan Yinglan.

While the used-car industry is not insanely crowded, Carro does face competition from various avenues. sgCarMart, the Singapore Press Holdings-owned car website, has been around since 2004 and is Singapore’s leading car website.

Carousell has also entered the used-car marketplace while smaller players like Drivenhope to gain traction.

The latest round brings Carro’s total investment to US$75 million. The company raised US$12 million in March 2017 to kickstart its lending service and US$3.5 million in June 2016.

Carro was founded in 2015.

Source: e27