Southeast Asia’s largest used car marketplace, Carro, is reportedly looking at opportunities to further expand in Asia, with eyes on the Philippines, Vietnam, and Australia.
In an interview with Technode Global, Carro’s chief strategy officer Kenji Narushima said the Singapore-based used car marketplace is eyeing several markets, including the Philippines, as part of its expansion plan after achieving profitability in the last financial year.
In a statement, Carro said its revenue more than doubled to about $463.50 million in FY2022. However, Narushima said in the interview that while the Philippines, Vietnam, and Australia, have always been in the radar, “it is still not fixed”.
Carro earlier announced its expansion into Japan through a joint venture with SoftBank Corporation. The venture, named Carro Japan Co Ltd, aims to introduce Carro’s full suite of services, such as subscription-based services and car leasing.
Carro Japan will support existing car dealers with leasing services and provide a highly competitive subscription-based service. In addition, Carro’s AI technology will be incorporated to accurately predict the valuation of used cars based on their history and data.
Founded in 2015, Carro is Southeast Asia’s largest online car retailer. It transforms the traditional way of buying and selling cars through proprietary pricing algorithms, AI-enabled capabilities, and innovative technological solutions.
Carro has raised over S$700M from Softbank Vision Fund and several sovereign funds.
Carro’s expansion in the Philippines, if it pushes through, could be strategic for the SoftBank-backed startup. According to research firm Ken Research, the Philippines’ used car market is expected to gain momentum from the emergence of more organized players in the future.
The market is also forecast to be consolidated in the future as the market share of players selling vehicles online is expected to surge.
Before the global pandemic, Malaysian used car marketplace Carsome announced plans to enter the Philippines through a joint venture. The move will expand the Gobi Partners-based company’s footprint in the region. It already operates in Indonesia, Singapore, Thailand, and Malaysia.