Automotive e-commerce platform Carsome has announced the completion of its Series D fundraising in the amount of $30 million, led by Asia Partners, and joined by existing Carsome investors Burda Principal Investments and Ondine Capital. With over US$115mn raised to date, Carsome now looks to accelerate its regional expansion in Southeast Asia.
With operations across Malaysia, Indonesia, Thailand and Singapore, Carsome aims to digitize the region’s used car industry by reshaping and elevating the car buying and selling experience.
Founded in 2015 in Malaysia, the company provides end-to-end solutions to consumers and used car dealers, from car inspection to ownership transfer to financing, focusing on trust, convenience, and efficiency. Carsome currently transacts 70,000 cars with a total value of $600 million, with more than 1,000 employees across all its offices.
“We will use this capital to strengthen our existing regional leadership in consumer-to-business (C2B) used car e-commerce and accelerate our already successful new offering in the business-to-consumer (B2C) segment. We look forward to rolling out Southeast Asia’s first-ever C2B and B2C integrated e-commerce platform for used cars, a significantly superior new retail experience,” says Eric Cheng, Co-Founder and Group Chief Executive Officer of Carsome.
“Over the past six months, we have doubled our monthly revenue compared to pre-pandemic levels, a dramatic acceleration due to the impact of the ongoing Covid-19 pandemic on consumer behavior across our region,” Cheng added. “Consumers across our core markets of Malaysia, Indonesia, Thailand, and Singapore are increasingly purchasing cars to keep their families safe and adapt their businesses.”
Carsome’s business model includes vehicle inspection and certification prior to placing these on the market, aimed at building consumer trust in a traditionally offline and fragmented industry. The company also provides extended warranties and money-back guarantees to purchases on the platform.
“Our Series D round will further support potential merger and acquisition opportunities in acquiring ancillary capabilities and consolidating our supply chain,” says Juliet Zhu, Carsome Group Chief Financial Officer.
Earlier this year, Carsome launched an “Experience Center” in Malaysia where it showcased select vehicles being sold by dealers in its network.
The company recorded its highest revenue quarter in history as of the third quarter of 2020, doubling its revenue from the pre-pandemic period. In November 2020, Carsome celebrated its 100,000th car sold through its platform, which the company considers an important milestone achieved within five years of founding.
Image: Eric Cheng, Co-founder and Group CEO of Carsome (seated 3rd from right); Juliet Zhu, Group CFO of Carsome (seated 2nd from right) & Carsome’s Senior Management Team