Singapore-based online used car retailer Carro achieved profitability in its last financial year (FY2022) as its revenue more than doubled to S$650 million ($463.49 million).

The firm said in a statement it is currently tracking at over S$1.3 billion ($930 million) in run-rate revenue and is poised to deliver another two times growth in revenue this financial year (FY2023).

“FY2022 was our strongest showing yet. Not only did we grow 2.5 times, we did so profitably. We were laser focused over the pandemic around operational excellence and cost improvements; we chose to utilise programmers to solve our problems and are starting to see the fruits of our labour,” said Aaron Tan, Co-Founder and Chief Executive Officer of Carro.

The group’s continued focus on online retailing and machine learning have brought about record gross profits, and it is on track to improve its gross profit margins to about 10 percent by the end of this financial year, thereby tripling its absolute gross profit.

“At Carro, we’re focusing on data science and machine learning in every aspect of the consumer journey, from the pricing algorithm of our customer’s cars to credit approvals. By leveraging machine learning to improve and automate our processes, we’ve achieved best-in-class GPM in this region compared with our peers,” said Bryan Tan, Chief Data Scientist of Carro.

Carro’s online retailing of certified pre-owned vehicles and financial services arm also drove the bulk of its improvements in profitability and margins. Excluding its wholesale business, the company expects gross profit margins to be almost 15 percent.

Genie Financial Services, Carro’s wholly-owned fintech business, also recorded a very strong performance in FY2022.

The company’s non performing loans ratio remains at a low of 0.1 percent as it continued to deliver about 30 percent return on equity in the last financial year. The overall loan book grew almost two times to a record S$400 million this year.

“Our revenue growth was not just driven by a single market – in fact all four of our markets contributed to the strong financial year. Thailand alone transacted approximately 35 thousand units run-rate per year and Indonesia today accounts for almost S$40 million ($34.94 million) annualised earnings before interest, taxes, depreciation, and amortization (EBITDA),

“We expect revenue for our online retail and ancillary business to hit over S$500 million ($356.53 million) this financial year,” said Ernest Chew, Chief Financial Officer of Carro.

Since the beginning of FY2023, CARRO also secured close to S$200 million ($142.61 million) in additional financing from nine global and domestic financial institutions at highly competitive rates.

Following its strong performance in FY2022, Carro has also set its sights beyond the shores of Southeast Asia, and has since expanded into Taiwan and Japan this quarter. The company expects to be EBITDA positive again this year.

Founded in 2015, Carro is Southeast Asia’s largest online car retailer. By offering a trustworthy and transparent experience, the firm transforms the traditional way of buying and selling cars through proprietary pricing algorithms, artificial intelligence (AI)-enabled capabilities, and innovative technological solutions.

Headquartered in Singapore, the firm has a strong presence in Asia Pacific supported by more than 2,000 employees across Indonesia, Thailand, Malaysia, and Vietnam. It has raised over S$700 million ($499.14) from Softbank Vision Fund and several sovereign funds.

Singapore’s used car platform Carro buys 50% stake in Indonesian rental firm MPMRent – report