Singapore auto marketplace Carro gets $12m
A group of Southeast Asian VCs have committed $12 million to Singaporean automobile marketplace Carro as part of an operational expansion into artificial intelligence (AI)-enabled car financing services.
Singapore-based Singtel Innov8 and Indonesia’s Venturra Capital and Alpha JWC participated in the round. All three investors contributed to a $5.3 million investment in the company last year alongside Golden Gate Ventures, GMO Venture Partners, Coffee Ventures and Skystar Ventures.
The capital will be used to develop Carro's new subsidiary Genie Financial Services, which will use AI technology to facilitate auto financing transactions across Southeast Asia. The region is regarded as having a higher relative level of customer reliance on financing than other major car markets such as the US and China.
Genie aims to provide a comprehensive and efficient financing service that will include underwriting loans. This will include 24-hour support via a mobile-accessible interface. Much of the strategic emphasis will be on customization.
“We wear different size of clothes, cuts, colors and design - auto financing should be the same. It should be tailored to suit your needs,” Edgar Hardless, CEO of Singtel Innov8, said in a statement. “We asked ourselves what would we do if we were to re-imagine the way auto financing is being offered. Rather than just being another financier, the team decided to redesign the entire customer journey and provide them with an alternative experience.”
According to the ASEAN Automotive Federation, motor vehicle sales in Southeast Asia climbed 3% during 2016 to about 3.2 million units after experiencing a 4% year-on-year decline in 2015 and a 10% slide in 2014. By comparison, Chinese car sales reached a record total of 28 million in 2016, up 14% year-on-year.
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