CARRO acquires MPM Rent in a deal valued at US$54M, makes the largest move towards mobility

• MPM Rent is a leading Indonesian mobility company which offers a broad spectrum of mobility solutions, from retailing and distributing motorcycles and cars, after-market parts and services, transportation and financial services.
• MPMRent, a member of MPMX is one of the largest rental services companies in Indonesia with over 13,000 fleet size providing short- and long-term transportation rental services and its supporting services
• MPMRent has a positive track record of over 35% EBITDA margin, profitable and cash flow generative
• CARRO will strengthen the company’s core tech capabilities, and accelerate the move into electrification and sustainability by implementing AI-driven pricing algorithms, computer vision inspection system

SINGAPORE, 6 June 2022 – Southeast Asia’s largest used car marketplace, CARRO, and PT Mitra Pinasthika Mustika Tbk (IDX Ticker: MPMX – “MPMX”) Indonesia’s leading consumer automotive and transportation companies, today announced that they have signed a definitive agreement on the 31st May 2022 to enter into a strategic partnership. CARRO’s investment of SGD75 million (Rp783.8 billion) , will see the company become a 50% shareholder of PT Mitra Pinasthika Mustika Rent (“MPMRent”).

This deal marks the start of a strategic partnership between MPMX, Indonesia’s leading automotive, transportation and Southeast Asia’s largest and fastest-growing automotive marketplace – CARRO to provide an end-to-end ecosystem for consumers in Indonesia, including online marketplace, financing, rental, repair and aftersales. This partnership will further strengthen the competitive advantage of MPMX and drive further growth in Indonesia.

Commenting on the partnership, Aaron Tan, CEO of CARRO said, “We remain steadfast and committed to investing and advancing our business in Indonesia despite the uncertain global macro environment. We look forward to partnering with MPMX to supercharge growth and transform the customer’s experience through the hundreds of engineers and data scientists across the CARRO Group.”

“We are pleased to announce the agreement that Company has signed with Carro. We also thank you for the support and active role of our parent shareholder, namely PT Saratoga Investama Sedaya Tbk in realizing this partnership. The Company and Saratoga believe that Carro is an excellent partner that would be able to add strategic value to the business of the Company through its standing track records of success and operational experiences in a fully-integrated online automotive ecosystem. This is an important and exciting next chapter for MPMRent whereas this partnership will create a one-of-a-kind integrated online and offline automotive ecosystem in Indonesia that offers a complete product and services offering for our customers using the marketplace, from rental and financing to insurance serving B2B and B2C markets,” said Suwito Mawarwati, Group Chief Executive Officer of PT Mitra Pinasthika Mustika Tbk.

Strategic rationale

This acquisition presents a win-win situation for both companies, capitalising on the inherent strengths of both CARRO and MPMX, making it one of the most competitive service providers in the region. CARRO brings its fully integrated online ecosystem from car marketplace to financing, Big Data, AI access to a fast-growing vehicle database, and relevant computer vision and pricing algorithms technologies. As a result, MPMRent will now be able to solidify its market position as the leading regional car / rental company in Southeast Asia, providing access to a rapidly growing network of workshops, strategic nationwide rental and auction locations, a profitable and diversified customer base, and strong operational capabilities. The agreement will also accelerate MPMX’s continuous effort to unlock the value of existing businesses, while investing in innovation and the company’s digital transformation.

Building on both companies’ commitment to their strategy and continued transformation to delivering a globally relevant platform for next-generation products and services in the automotive marketplace, the joint venture will also amplify value for both customers and dealers. This includes giving access to a wider selection of quality used cars within their inventory throughout the rental and post-rental period; better quality-management and control practices and further digitizing MPMX’s services to ensure a smooth and seamless journey for B2B customers.

More in other media

Asia Tech Daily: CARRO Invests $54m in Indonesia’s MPMX
Bloomberg: SoftBank-backed Carro Buys 50% Stake in Indonesia’s MPM Rent
CNBC Indonesia: MPMRent Dapat Suntikan Rp 783,8 M dari Perusahaan Singapura
Jakarta Globe: MPMX Announces Strategic Partnership with Carro
Reuters: Southeast Asian car marketplace Carro takes 50% stake in Indonesia rental firm