Automotive Marketplace Carro Hits Unicorn Status With $360M Series C Led By SoftBank Vision Fund 2
Automotive marketplace Carro hits unicorn status with $360M Series C led by SoftBank Vision Fund 2
Carro, one of Southeast Asia's largest automotive marketplaces, announced it has reached unicorn status following a $360 million Series C led by SoftBank Vision Fund 2. Among the other participants are insurance giant MSIG and funds based in Indonesia, such as EV Growth. Carro sells approximately 90% of its vehicles used, and it provides services that span the vehicle's entire lifecycle, from maintenance to dismantling and recycling for parts.
Carro began as an online marketplace for cars in 2015 before diversifying into additional verticals. According to co-founder and CEO Aaron Tan, the company's operations are roughly divided into three segments: wholesale, retail, and fintech. Its wholesale division works with car dealers to acquire inventory, while its retail division sells directly to consumers. Its fintech division caters to both with products such as B2C auto loans, auto insurance, and B2B working capital loans.
Carro's most recent funding announcement came in August 2019, when it announced an extension of its Series B financing to $90 million. Carro will use the new funding to fund acquisitions, expand its financial services portfolio, and further develop its artificial intelligence capabilities, which it uses to showcase cars online, develop pricing models, and determine how much to charge insurance policyholders.
Additionally, it intends to expand retail services in its primary markets, which include Indonesia, Thailand, Malaysia, and Singapore. Carro employs approximately 1,000 people across four countries and claims that its revenue increased by more than 2.5 times during the fiscal year ending March 2021.
Carro's business benefited from the COVID-19 pandemic because people desired their own vehicles to avoid public transportation and became more receptive to online car shopping. These factors also contributed to the success of competitors such as OLX Autos and Carsome during the pandemic.
The rapid adoption of electric vehicles in Southeast Asia has created a new tailwind for Carro, as most people who purchase an EV do so in order to sell their combustion engine vehicles. Carro is currently in talks with several of the world's largest electric vehicle manufacturers about launching in Southeast Asia.
“For every car purchased in Southeast Asia, there is almost always a trade-in. Where do automobiles go, correct? We are a marketplace, but at the most fundamental level, we are reusing and recycling. That plays a significant role in the business's environmental sustainability, and it distinguishes us from other players in the region,” Tan explained.
Carro's inventory typically retains vehicles for less than 60 days. Its platform simulates the in-person inspection experience through the use of computer vision and sound technology. When someone clicks on a Carro listing, an AI bot engages with them automatically, providing additional information about the car's price and answering questions. Additionally, they get a 360-degree view of the vehicle's exterior and interior, as well as the ability to virtually start the engine to hear how it sounds. Likewise, listings include information on defects and inspection reports.
Carro recently launched a beta product called Showroom Anywhere to accommodate customers who prefer an in-person look before finalizing a purchase. It is currently available in Singapore and enables residents to unlock Carro cars parked throughout the city using QR codes, allowing them to inspect them at any time of day, without the presence of a salesperson. The company intends to expand Showroom Anywhere to include test driving.
In Conclusion
The rapid adoption of electric vehicles in Southeast Asia has created a new tailwind for Carro, as most people who purchase an EV do so in order to sell their combustion engine vehicles. Carro is currently in talks with several of the world's largest electric vehicle manufacturers about launching in Southeast Asia.
“For every car purchased in Southeast Asia, there is almost always a trade-in. Where do automobiles go, correct? We are a marketplace, but at the most fundamental level, we are reusing and recycling. That plays a significant role in the business's environmental sustainability, and it distinguishes us from other players in the region,” Tan explained.
Carro's inventory typically retains vehicles for less than 60 days. Its platform simulates the in-person inspection experience through the use of computer vision and sound technology. When someone clicks on a Carro listing, an AI bot engages with them automatically, providing additional information about the car's price and answering questions. Additionally, they get a 360-degree view of the vehicle's exterior and interior, as well as the ability to virtually start the engine to hear how it sounds. In addition, listings include information on defects and inspection reports.
Carro recently launched a beta product called Showroom Anywhere to accommodate customers who prefer an in-person look before finalizing a purchase. It is currently available in Singapore and enables residents to unlock Carro cars parked throughout the city using QR codes, allowing them to inspect them at any time of day, without the presence of a salesperson. The company intends to expand Showroom Anywhere to include test driving.
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