Carro, the Singapore-based online used car platform, has achieved best quarterly profitability since inception in the first quarter of FY2024.

The company said in a statement on Thursday that the firm has clocked its highest earnings before interest, taxes, depreciation, and amortization (EBITDA) of over $4 million for the month of June.

It said the firm has also exceeded profitability targets for the first quarter of FY2024, despite a seasonally weaker quarter given the Hari Raya, Lebaran and Songkran holidays across the region.

According to the statement, Carro’s first quarter FY2024 gross profit margins increased to 14 percent, well-ahead of FY2023’s gross profit margins of 9 percent.

Its EBITDA is now at an annualized run-rate of over $50 million, more than 10 times of what it achieved for the entire FY2023.

“Our focus on fundamentals and our reluctance to enter into subsidy wars has enabled us to deliver four quarters of positive EBITDA,” said Aaron Tan, Co-Founder and Chief Executive Officer of Carro.

According to him, the strong execution of the firm’s digital ecosystem-led business model has made its business fundamentally stronger and more resilient, with significant ‘sticky’ recurring ancillary income streams.

He also noted that ancillary attachment rates are going up as the firm focuses more on its platform flywheel.

He also said the investment from Jardine C&C will help the firm drives even more earnings growth, particularly from aftersales.

He said the firm’s insure-tech partnerships with ZA Tech and MSIG are bearing fruits, with gross written premium growing nearly 100 year-over-year.

It is noted that Carro earlier announced plans to enter into Japan and other markets.

“With strong cash flows and no operational burn, we made a strategic decision to expand into new markets this year – this will ensure stronger growth for Carro in the years ahead,” Tan added.

Meanwhile, Carro Chief Financial Officer Ernest Chew said that Carro has bucked the industry trend and performed well in the first quarter with profitability metrics up across the board.

“Our first quarter EBITDA is already more than three times of our entire last financial year and we continue to be EBITDA positive in all core markets,” he said.

According to him, ancillaries continue to represent nearly 60 percent of the firm’s gross profit, so the firm is under no pressure to sell more just to meet profitability targets.

He also noted that the firm’s marketplace business, which contributes nearly 85 percent of its revenues, has doubled gross profit margins over the last 12 months.

“Gross profit for mobility grew nearly 200 percent, aftersales grew over 150 percent, whilst financing and insurance grew about 50 percent each year-over-year,

“We expect explosive earnings growth in the near term. We are one of very few profitable tech start-ups, not just in Asia, but globally as well,” he added.

Founded in 2015, Carro is Southeast Asia’s largest online used car marketplace.

The firm transforms the traditional way of buying and selling cars through proprietary pricing algorithms, artificial intelligence (AI)-enabled capabilities, and innovative technological solutions.

Carro holds a strong presence in key markets across Asia Pacific, including Malaysia, Indonesia, and Thailand, and has recently expanded its reach to Japan and Taiwan.

The unicorn startup is supported by more than 4,500 employees across Asia-Pacific and has raised over $1 billion in debt and equity from Temasek, Softbank Vision Fund and several other sovereign funds.

Softbank-backed Carro reports record EBITDA in FY2023 driven by strong recurring ecosystem ancillaries