Carsome, Southeast Asia’s leading used car trading platform, new funding of USD500 million will strengthen regional market leadership in the auto trading ecosystem through strategic partnerships offering the whole suite of value-added services including car loans, dealer financing, warranty and insurance.
With over 40,000 cars transacted annually totalling more than USD300 million in transaction value, excluding all loan and financing deployment makes Carsome the market leader in Malaysia, Indonesia and Thailand. Carsome prides itself as a one-stop solution for car sellers and dealers, from inspection to ownership transfer, promising a hassle-free process with instant payment and seamless paperwork.
To date, Carsome has more than 6,000 dealers across over 50 cities in Malaysia, Thailand, Indonesia and Singapore on its platform and over 12,000 monthly inspections at its inspection centres across Southeast Asia.
The current financing round welcomed new investors including MUFG Innovation Partners (MUIP), corporate venture capital arm and a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc (MUFG), one of the world’s leading financial groups, as well as Daiwa PI Partners, the private equity arm of Daiwa Securities Group, one of Japan’s largest securities groups, Endeavor Catalyst and Ondine Capital.
The capital new injection will be used to help consolidate Carsome’s market leadership with expansion into more cities in Southeast Asia, and to accelerate financing product offerings for dealers and consumers with multi-country roll-outs over the next 12 months.
Carsome has built a successful track record with loan portfolios over the past year and is ready to scale up the offering by working with strategic partners, including regional banks and non-banking financial institutions.
“We are delighted and encouraged by the support of our global investors in our Series C round. They share in our vision to revolutionise Southeast Asia’s used car industry by establishing and upholding a new standard of quality assurance and through the better use of transactional data, said Eric Cheng, Co-founder and CEO of Carsome.
“We aspire to be the Visa/Master network of auto transactions, and build a collaborative ecosystem of partners to provide the best experience to consumers in Southeast Asia,” Cheng added.
As part of the strategic investment, Carsome will collaborate with MUFG and its subsidiaries to provide business-to-business (B2B) and business-to-consumer (B2C) financing on Carsome’s platform by leveraging Carsome’s transactional data, further expanding Carsome’s positioning as the leading used car ecosystem in the region.
“MUIP is proud to participate in this round of financing for Carsome,” said Nobutake Suzuki, President and CEO of MUIP. We’re excited to be partnering with Eric and his team — their technology-first approach to solving the used car industry’s biggest pain points such as long wait times for sales and lack of transparency in the sales process for budget-conscious SMEs and consumers has compelling advantages over existing competitors.
“We truly believe Carsome is well-positioned to exhibit strong market leadership by delivering best-in-class experience to consumers and dealers throughout the used car supply chain.”
Carsome has over 700 employees across its Southeast Asia offices and remains highly capital efficient. It is operationally profitable in Malaysia and targets profitability in the remaining markets by end-2020.