Business News | Carro Receives Strategic Investment from Woori, Capping off a Record FY2024 with 11x Year-over-year EBITDA Growth

In an impressive culmination to the fiscal year 2024, Carro, Asia Pacific’s foremost and fastest-growing online used car platform, has reported a remarkable EBITDA of S$43 million (US$32 million), paired with a 4% EBITDA margin as per their audited figures.

Marking a significant milestone, Woori Venture Partners has made their first late-stage deal in Southeast Asia through a strategic investment in Carro. This development is aimed at fostering a closer partnership as Carro intensifies its expansion plans across the region, particularly targeting Indonesia.

Achieving its best-ever EBITDA, Carro reports a fourth consecutive year of positive EBITDA, soaring to S$43 million (US$32 million). Furthermore, their gross profit reached an all-time high of S$124 million (US$92 million), reflecting a 49% increase from the prior year. The gross profit margin expanded to 12%, a marked improvement from 8% in FY2023, bolstered by nearly 60% of gross profit generated from ancillaries. Overall, total assets rose by 15% year-over-year to S$1.3 billion (US$0.9 billion).

Carro’s remarkable gross profit margin has been fortified by enhanced marketplace margin expansion, growth in ecosystem-led ancillary income, and optimization of productivity. Notably, the company’s fintech arm, Genie Financial Services, witnessed disciplined growth across the region while maintaining non-performing loans (NPL) below 0.5%, well ahead of industry benchmarks. Consequently, the loan book expanded to S$496 million (US$370 million).

In the past year, Carro has broadened its territorial reach to seven markets, venturing beyond Southeast Asia to include Hong Kong and Japan.

Aaron Tan, co-founder and Group CEO of Carro, remarked, “These figures emphasize the unique differentiated benefits of our ecosystem-led business model. Our focus on expanding marketplace margins through cross-selling ancillaries to establish recurring income streams remains paramount. Even as we record significant growth in volumes, we stay dedicated to enhancing profitability, consumer lifetime value across our ecosystem, inventory turnover speed, and productivity. Leveraging advanced data, AI, and machine learning, we are poised for sustainable and profitable scaling within our core markets, while being equally excited about expanding in Hong Kong and Japan. The market presents ample room for growth as we aim for scalability and sustainability.”

Ernest Chew, Chief Financial Officer of Carro, shared insights, “Our achievement goes beyond our initial target of a 10x EBITDA growth, even amidst a challenging macro-environment. Enhanced margins across most profitability metrics are largely due to our focus on the quality of revenues and consistent earnings, contributing to a 92% reduction in reported operating loss. While our operational cash flow has transitioned to positive, we remain exceedingly cautious with liquidity, amassing over S$400 million in cash and unused credit lines. Concurrently, we have adhered to cost management, boosting efficiencies, and implementing digital transformations for substantial earnings growth.”

This year, noted for strategic alliances, saw Carro securing investments from Jardines, leading to the launch of “Carro Care Powered by Jardine & Cycle,” enriching Carro’s in-house refurbishment and after-sales servicing capabilities. Another strategic investment was secured from DRB-Hicom, enhancing Carro’s Malaysian fintech ventures, which have experienced solid growth. Additionally, collaborating with ZA Tech enabled Carro to offer bespoke self-serve insurance products online, resulting in an explosion of Gross Written Premium growth by over 60%.

With the latest strategic investment from Woori Venture Partners, Carro aims to deepen its presence in Southeast Asian markets, focusing on Indonesia where Woori has established a significant footprint. The Indonesian used car market is projected at US$56.3 billion in 2024, striving to reach US$74.4 billion by 2029. The thriving economy coupled with increasing car ownership desires, yet hindered by limited affordable financing, positions Carro favorably.

Alan Ang, Director of Woori Venture Partners, expressed, “Carro epitomizes leadership within a sector ready for disruption, promising expansive growth. Their profitable scaling potential is commendable. Our investment in Carro exemplifies our dedication as global venture capital leaders to empower exceptional founders and sustainable enterprises worldwide. We are delighted to partner strategically with Carro in advancing their growth journey.”

Ernest Chew further noted, “Establishing robust partnerships with banks and financial entities is always a priority for Carro. Woori Venture Partners’ investment, as a venture capital extension of Woori Financial Holdings—a reputable Korean financial institution—strongly endorses our ecosystem-led and complementary fintech business model. We anticipate collaborating with Woori to identify market gaps, better serve the underserved, and foster financial inclusion.”

Founded in 2015, Carro has emerged as Asia Pacific’s largest online used car marketplace, offering a reliable and transparent experience. By leveraging proprietary pricing algorithms, AI technologies, and innovative solutions, Carro transforms the conventional car buying and selling methodology.

Located in Singapore, Carro has evolved into a unicorn startup, raising over S$700 million from Softbank Vision Fund and various sovereign funds. In FY2024, Carro achieved its best-ever full-year positive EBITDA of S$43 million. Supported by more than 5,000 employees across Asia-Pacific, Carro and its subsidiaries span several regions:

• Carro: Southeast Asia’s largest online used marketplace with a strong presence in Singapore, Malaysia, Indonesia, Thailand, and recent expansions to Japan, Taiwan, and Hong Kong.
• Carro Care Powered by Jardine & Cycle: Carro’s in-house refurbishment and after-sales servicing capabilities.
• Genie Financial Services: A pioneering fintech automotive financing provider in Singapore, Malaysia, Indonesia, and Thailand.
• MPM Rent: A leading mobility solutions company in Indonesia specializing in leasing and fleet financing transportation services.
• Innorithm: A modern fleet management solutions company utilizing cutting-edge IoT and machine learning.
• Kaidee: Thailand’s largest online shopping and classifieds platform.

With its strong foundation and strategic partnerships, Carro is perfectly positioned to continue its growth journey, capitalizing on new opportunities within the Asia-Pacific markets.