CARRO invests $54m in Indonesia’s MPMX

CARRO, Southeast Asia’s largest used automobile marketplace, and PT Mitra Pinasthika Mustika Tbk, Indonesia’s leading consumer automotive and transportation company, announced that they would enter into a strategic collaboration.

CARRO will become a 50% shareholder of PT Mitra Pinasthika Mustika Rent after investing $54 million (Rp783.8 billion).

This agreement kicks off a strategic partnership between MPMX, Indonesia’s leading automotive and transportation company, and CARRO, Southeast Asia’s largest and fastest-growing automotive marketplace, to provide consumers in Indonesia with an end-to-end ecosystem that includes an online marketplace, financing, rental, repair, and aftersales.

This will also bolster MPMX’s competitive advantage and propel the company forward in Indonesia.

Aaron Tan, CEO of CARRO, said despite the uncertain global macro climate, they remain steadfast and committed to developing and advancing our business in Indonesia.

“We look forward to partnering with MPMX to supercharge growth and transform the customer’s experience through the hundreds of engineers and data scientists across the CARRO Group,” Tan said in a statement.

Suwito Mawarwati, Group Chief Executive Officer of PT Mitra Pinasthika Mustika Tbk, thanked the active role of their parent shareholder PT Saratoga Investama Sedaya Tbk in realizing this partnership with Carro.

They believe that Carro is “an excellent partner that would be able to add strategic value to the business of the company through its standing track records of success and operational experiences in a fully-integrated online automotive ecosystem.

Mawarwati added this will be an exciting next chapter for MPM Rent as this partnership will also create a one-of-a-kind integrated online and offline automotive ecosystem in Indonesia that offers complete products and services offering for their customers using the marketplace, from rental and financing to insurance serving B2B and B2C markets.

This merger is a win-win situation for both firms, combining the natural capabilities of CARRO and MPMX to create one of the region’s most competitive service providers.

CARRO delivers its completely integrated online ecosystem, which includes everything from automobile marketplaces to financing, as well as Big Data, AI access to a rapidly developing vehicle database, and applicable computer vision and pricing algorithms technologies.

As a result, MPMRent will be able to strengthen its position as Southeast Asia’s leading regional car/rental company, with access to a rapidly expanding network of workshops, strategic nationwide rental and auction locations, and a profitable and diverse customer base, and strong operational capabilities.