Carro, Singapore based online marketplace for used cars, has raised $5.3 Million in Series A round of funding. The funding round was led by Venturra Capital (backed by Indonesia’s Lippo Group) and it also saw participation from Alpha JWC and Skystar Ventures (Indonesia), Singtel Innov8 and Golden Gate Ventures (Singapore) and GMO Ventures (Japan). A few more investors also participated, however, their names were not disclosed by the startup.
Aaron Tan, CEO – Carro said on the investment that they are planning to expand their reach to countries like Malaysia, Indonesia and Thailand by the end of this year. He further stated that though, they have not made any announcement yet, but the work is already in progress in these countries and the startup has been hiring in the respective countries for a while now and a private beta is already in place.
Carro, started by a team of 5 car enthusiasts in November 2015 is an online marketplace based on various algorithms, which helps the users buy and sell their used cars. The revenue model for Carro depends on the transactions, where it charges SG$250 (US$183) for per car sold via its platform. In addition to that, the platform also charges a fixed commission from the financial institutions like banks on every transaction.
The team at Carro believes that the success they have achieved is because of the tech based approach they have implemented. The whole of model is based on various technologies like data analytics, machine learning, visualization and product management. Another plus point according to Aaron is that the management team also contributes directly to product development and that is one of the reasons behind it launching over 3 new featured products within last 6 months.
Since February 2016, Carro has developed a few tools to complement its main business. It developed Carro Accessories to supply the car accessories to buyers across the country and a price evaluation tool called graph.sg. Another announcement, which took place just today, makes the company launch Carro Workshop, which will help users find the best service center for their car, based on the location and pricing.
Further speaking to the media, Aaron added that the main challenge has been to convince the users that there is a better and convenient way to sell their cars, apart from taking it to the traditional dealers. He added that in the longer run, more than the number in revenue field, what will matter is the fact that Carro has been successful in providing a new alternate way to the customers and saving them millions of dollars of the dealership fee.
Carro claims that it has grown at a rate of 30% month-on-month since the launch and it is planning to hit gross merchandise run rate of SG$100 Million (US$73.5 Million) by end of this year.
This was the second round raised by the startup. Before this, it had raised SG$1 Million in seed round in November 2015, soon after it was launched.