Used-car marketplace Carro scores investment from insurtech major ZA Tech

Carro, Southeast Asia’s largest used car marketplace, has received an undisclosed amount of investment from insurtech major ZA Tech Global Limited (ZA Tech), according to an announcement.

The two firms have also signed a joint venture deal that will transform and streamline the online insurance distribution and claims process for customers and insurers alike. According to the announcement, the deal will allow Carro to fill int he gaps in the automotive sector through innovative tech powered by generative AI tools such as ChatGPT.

By leveraging ZA Tech’s core platform, Fusion, Carro will be able to tap into a rich set of APIs and tools to manage administrative tasks, such as quote generation, policy renewals and e-policy notifications. Fusion will also enable Carro to easily embed and control insurance journeys for customers.

This journey is now available for Carro in Singapore and Malaysia. Insurers include Income, MSIG and DirectAsia for Singapore as well as Takaful Malaysia, MSIG, Allianz, and Zurich for Malaysia.

With an initial focus on auto insurance, there is a roadmap to extend the product portfolio offerings to include property, life and health insurance in the future.

“This investment with ZA Tech allows us to adopt the best practices as well as technologies from ZA Tech and bring it across Southeast Asia. We truly want to power and transform the way consumers learn and buy insurance online,” said Carro’s CEO and co-founder Aaron Tan.

Founded in 2015, Carro is Southeast Asia’s largest used car marketplace. By offering a trustworthy and transparent experience, Carro transforms the traditional way of buying and selling cars through proprietary pricing algorithms, AI-enabled capabilities, and innovative technological solutions.

ZA Tech, on the other hand, is a technology venture founded by ZA International and backed by Softbank’s Vision Fund 1. ZA Tech aims to redefine insurance through innovation with operations in multiple regions across the globe and a diverse 800+ employee force. ZA Tech enables leading insurers and platforms to unlock the value of digital in insurance, grow ecosystem partnerships and accelerate the delivery of next-gen innovative insurance propositions.