Carro gets Korean venture capital to boost S-E Asia expansion

SINGAPORE: South Korean investment firm Woori Venture Partners has injected strategic funding into the Carro online used car marketplace to bolster the platform's growth in South-East Asia, particularly in Indonesia.

Carro did not reveal the amount secured.

The Indonesian used car market is projected to grow from US$56.3 billion (RM250bil) in 2024 to US$74.4 billion (RM331bil) by 2029, according to Mordor Intelligence. Woori’s strong regional presence is expected to enhance Carro’s operations in this expanding market.

Carro reported an EBITDA (earnings before interest, tax, depreciation, amortization) of S$43 million (RM142mil) for FY2024, with a 4% margin, and a gross profit margin increase to 12%. The company attributed this growth to higher marketplace margins, ecosystem-driven ancillary income, and operational optimisations.

Carro said its fintech arm, Genie Financial Services, expanded prudently, keeping non-performing loans below 0.5% — a benchmark-setting performance.

Carro has expanded into seven markets, adding Hong Kong and Japan to its portfolio this year.

Co-founder and CEO Aaron Tan said the company is focusing on leveraging data and technology for scalable, profitable growth while improving inventory turnover and customer lifetime value.

CFO Ernest Chew highlighted a 92% reduction in operating loss and the company’s strong liquidity position, with over S$400 million (RM1.3bil) in cash and undrawn lines.

In addition to Woori’s investment, Carro received backing from DRB-Hicom for its Malaysian fintech operations and partnered with Jardines for after-sales servicing. It also worked with ZA Tech to offer personalised insurance, driving a 60% surge in gross written premiums.

Woori’s director, Alan Ang, described Singapore-based Carro as a market leader poised for disruption and expansive growth.