Softbank-backed, Singapore-based used car marketplace and lender Carro said it had cut its operating losses by 92% in its fiscal year 2024, driven by improved revenue quality and recurring earnings.
“Despite a challenging macro-environment, we achieved significantly improved margins across most profitability metrics,” said Ernest Chew, chief financial officer at Carro.
The company posted an EBITDA of S$43 million (US$32 million) and a 4% EBITDA margin, while gross profit margin rose to 12%. Its gross profit increased 49% from a year earlier to S$124 million ($92.6 million).
Chew said the performance brought Carro “within striking distance” of operating profitability. He added that Carro has built up a war chest of over S$400 million in cash and undrawn lines.
The company also widened its geographic reach to seven markets, including Hong Kong and Japan.
Carro credited the improved margins to enhanced marketplace offerings, ecosystem-led ancillary income, and tighter cost controls.
Its fintech unit, Genie Financial Services, kept non-performing loans below 0.5% and expanded its loan book to S$496 million ($370 million). Total assets stood at S$1.3 billion ($970 million).
“These numbers underscore the unique differentiated benefits of our ecosystem-led business operating model, as we focus on driving marketplace margin expansion by cross-selling ancillaries to drive recurring income streams,” said Carro co-founder and group CEO Aaron Tan.
The company also announced raising an undisclosed amount of funding from Woori Venture Partners, marking the South Korean investment firm’s first late-stage deal in Southeast Asia.
Carro said it will use the fresh investment to accelerate its growth in the region, particularly Indonesia, where Woori has a strong presence. Indonesia’s used car market size is projected to reach $74.4 billion by 2029 from $56.3 billion this year, according to a Mordor Intelligence study.
Founded in 2015, Carro has raised over $1 billion in debt and equity from investors including Japan’s SoftBank Corp and Singapore’s sovereign wealth fund GIC.
Top shareholders of Carro
In June, Carro secured a S$75-million ($55.4 million) multi-currency loan from HSBC to fund its fintech arm Genie Financial Services. Genie can accurately reprice and compute a loan to suit an individual’s risk profile. It is available in Singapore, Malaysia, Indonesia, and Thailand.
The loan was part of HSBC’s $1-billion ASEAN Growth Fund, which aims to support champions in Southeast Asia’s booming digital economy. The British financial services group was reportedly reviewing eight companies earlier this year for potential investment from the debt fund.
