S’pore startup Carro hits unicorn status after raising US$360M funding, also eyeing IPO

Singapore startup Carro said on Tuesday (June 15) that it has raised US$360 million (S$477.62 million) in its latest funding round led by SoftBank Vision Fund 2.

The Southeast Asian online automotive marketplace has raced past the US$1 billion valuation mark to become the region’s latest unicorn.

“The valuation for the company is well over a billion dollars,” CEO and founder of Carro, Aaron Tan, told Reuters in an interview. He did not provide an exact valuation.

In a statement, Carro said it closed its financial year ending (FYE) March 2021 with over 2.5x growth in annual revenue, and continues to be EBITDA positive for the second year running.

It was also named Asia Pacific’s fastest growing company in 2021 by The Financial Times and Statista.

Since being founded in 2015, Carro has raised more than US$400 million in equity and US$200 million in debt. Its previous investors include SoftBank Ventures Asia, EDBI Pte, Insignia Ventures Partners and B Capital Group.

This is a huge milestone for us. We are grateful for the strong support from our investors, which reaffirms our belief in the transformative power of AI in the automotive industry to deliver exceptional customer experience. As digitalisation shapes the global landscape through new consumer habits and business practices, it is a very exciting time for an end-to-end online car marketplace like Carro.

Aaron Tan, CEO and Founder of Carro

Southeast Asia’s largest car marketplace

Carro’s platform allows consumers and wholesale businesses to buy and sell vehicles along with providing insurance and financing services.

Carro will use the fresh funds to expand into new locations and grow its business in its existing markets — Indonesia, Thailand, Malaysia, and Singapore.

It also plans to expand its portfolio of financial services and accelerate development of artificial intelligence capabilities.

The firm also has plans for an Initial Public Offering in the next 18-24 months in the United States.

Featured Image Credit: Carro