Carro, Singapore’s used car marketplace has announced it raising S$1 million (US$716,000) in a seed funding round led by undisclosed angel investors.
Founded in 2015, the startup Carro brings together sellers and buyers through its web and mobile platform, mainly cutting middleman like dealers and mechanics. With the help of an algorithm, the company decides the best price for the sellers that are favorable for them. The startup assure more transparency in an industry where sellers “often receive low-ball offers from dealerships and buyers overpay or end up buying a lemon.” Though the business model may not be new, it has some unique programs that help its stand a step apart from others.
Aaron Tan, Director of Carro said, “Anyone who has ever tried to buy or sell a car would know how frustrating it is. In addition to parading around dealerships and dealing with thick stacks of paperwork, sellers often receive low-ball offers from dealerships, while buyers overpay or end up buying a lemon.”
With the fresh funds, Carro plans to expand into various other market regions in the near future and strengthen its current team of 15. It also plans to focus on improving marketing strategies to build the awareness of the brand.
One interesting feature that sets it apart from its competitors is that Carro guarantees to buy a car from its owner at the offer price if it not able to find a buyer after listing for 30 days. ” Our customers are direct buyers and sellers. Our inventory is therefore curated and skewed towards direct car buyers and sellers. Since we are selling direct, our prices tend to be more reasonable vis-a-vis dealers.”
Every car sold through Carro are thoroughly inspected with the help of in-house mechanics. Tan explained, ” We use tools like paint meters and OBD (on-board diagnostics) diagnostics tools to help us determine if the vehicle has not been in an accident before. Only cars that have no structural damage and under the age of seven years old and a mileage of less than 120,000 kilometres are on-boarded as certified cars. Cars that are marked with Carro Certified have gone through a 120-point check by our mechanics on demand.”