Carro raises US$360 mil in Series C funding led by SoftBank

• Funds to strengthen position, expand across Indonesia, Thailand, Malaysia, Singapore
• Closed financial year with over 2.5x growth, EBITDA positive for second year running

SOUTHEAST Asian automotive marketplace Carro announced that it has raise US$360 million in a Series C funding round led by SoftBank Vision Fund 2. Other notable investors in this new round include several prominent Indonesia-based funds including EV Growth, the company said in a statement.

“This is a huge milestone for us. We are grateful for the strong support from our investors, which reaffirms our belief in the transformative power of artificial intelligence (AI) in the automotive industry to deliver exceptional customer experience,” Aaron Tan, chief executive officer (CEO) and founder of Carro.

“As digitalisation shapes the global landscape through new consumer habits and business practices, it is a very exciting time for an end-to-end online car marketplace like Carro.”

Carro will use the funds to strengthen its market position and expand its retail offering across Indonesia, Thailand, Malaysia, and Singapore, which the startup said are markets that have seen significant growth in the past year.

Additionally, Carro will also enhance its portfolio of financial services by expanding beyond in-house loan financing and accelerate development of its AI capabilities.

Carro is said to provide a full-stack service for all aspects of car ownership and claimed to use AI-powered technology to transform the car buying and selling experience.

It said it has pioneered services such as Singapore’s first contactless car purchase service, first car subscription service and the first region-wide behaviour and usage-based car insurance.

Carro closed its financial year ending March 2021 with over a 2.5 times growth in revenue and continues to be EBITDA (earnings before interest, tax, depreciation and amortisation) positive for the second year running, the startup said.

“Carro is transforming the automotive industry in Southeast Asia by providing a seamless buying and selling experience for both consumers and car dealers.

“Powered by AI, Carro’s technology platform provides consumers with a full-stack services and transparency throughout the car ownership process,” said Greg Moon, managing partner of SoftBank Investment Advisers.

Moon said SoftBank is delighted to partner with Tan [Aaron] and the Carro team to support their ambition to expand into new markets and use AI-powered technology to make the car buying process smarter, simpler, and safer.”

SoftBank Group first invested in Carro in 2016 through SoftBank Ventures Asia, its venture capital arm and has continued to support Carro’s growth initiatives through the years.