Singapore – Regional integrated car e-commerce platform Carsome has recently closed its newest funding round, bringing the group’s liquidity position to approximately US$200 million. Said funding will help fuel the company’s goal of establishing an integrated car ownership ecosystem to elevate the customer’s experience in their entire ownership journey.
The car e-commerce platform hit an operational profitability milestone for the first time in 2022 on the back of significant growth in trade margin, which doubled compared to the same period last year. Moreover, a large chunk of its trade margin came from transaction margins, leaving a huge potential upside for ancillary revenue, especially given its increasing focus on ecosystem offerings, including financing, insurance, and aftersales.
Carsome also owns a large auto digital audience footprint of more than 15 million monthly active users through its content and media ecosystem, including the brands under iCar Asia and Wapcar. In addition to achieving over 30% growth in revenue and reaching profitability as independent business units of the group, Carsome’s ecosystem companies have also contributed to a 60% reduction in the group’s customer acquisition cost.
Eric Cheng, co-founder and group CEO at Carsome Group, said, “We have spent the last eight years building a more trusted way for customers to transact within Southeast Asia’s used car industry. Our comfortable liquidity position and strong backing from both existing and new investors place us on solid footing to deliver the world’s first integrated car ownership ecosystem, going beyond just buying and selling cars to include ancillary services across the whole ownership lifecycle. I wish to thank all our investors for their continued confidence in our vision and capabilities as we steer the company toward profitability as a group.”
Said funding round saw broad-based participation from CARSOME’s existing investors, including 65 Equity Partners, Seatown Private Capital Master Fund, Qatar Investment Authority, Gobi Partners, Asia Partners, and more recently growth-stage debt financing platform EvolutionX.
Meanwhile, Juliet Zhu, group president and chief financial officer at Carsome Group, commented, “We are delighted to have our new investor EvolutionX joining us at this stage of our growth. Profitability is just one of the milestones in our long-term capital planning, and we will continue to invite the right partners who can add strategic value at different stages of our growth.”
