Vision Fund leads $360m Series C for Southeast Asia's Carro

Several Indonesia-focused investors also took part but EV Growth, a later-stage investment platform controlled by East Ventures, was the only one named.

It follows a S$150 million debt-plus-equity commitment last October from Japan’s MS&AD Insurance and Mitsubishi Corporation. Carro’s two-tranche Series B closed at $90 million in 2019 with SoftBank Ventures Asia, Insignia Venture Partners, and B Capital Group taking the lead.

The company is Southeast Asia’s largest automotive marketplace with a presence in Singapore, Thailand, Indonesia, and Malaysia. Its core function is facilitating C2C and C2B used car transactions, leveraging a proprietary pricing algorithm, complemented by a much smaller presence in new vehicle sales and car rental and leasing. Carro introduced Singapore’s first car subscription service.

In addition, the company runs a financial services operation that spans B2C and B2B – including consumer car loans, working capital financing for businesses, and automotive insurance – and provides a suite of after-sale services such as car maintenance and roadside recovery.

Carro registered a 2.5x increase in revenue for the 12 months ended March and achieved positive EBITDA for the second year in a row. Following the S$150 million commitment last October, the company projected revenue would reach S$1 billion in 2022, largely driven by consumers seeking value and digital purchasing options amid the economic and safety pressures related to COVID-19.

The new funding will be used to deepen penetration of the four target geographies, enhance the financial services product offering, and accelerate the development of artificial intelligence (AI) capabilities.

“Carro is transforming the automotive industry in Southeast Asia by providing a seamless buying and selling experience for both consumers and car dealers. Powered by AI, Carro’s technology platform provides consumers with full-stack services and transparency throughout the car ownership process,” said Greg Moon, a managing partner at SoftBank Investment Advisers, in a statement.

SoftBank first gained exposure to Carro through SoftBank Ventures Asia in 2016, a year after its establishment. Other investors in the company include EDBI, The Dietrich Foundation, Ncore Ventures, Hanwha Asset Management, Singtel Innov8, Golden Gate Ventures, Alpha JWC Ventures, Venturra Capital, GMO Venture Partners, Coffee Ventures, and Skystar Ventures.

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• Topics
• Southeast Asia
• Expansion
• Technology
• Softbank
• EV Growth
• Growth capital
• automobiles
• TMT