SG auto marketplace Carro becomes unicorn after raising $360m funding

Carro, a Singapore-based online auto marketplace startup, announced raising $360 million in a Series C funding round led by SoftBank Vision Fund 2, making it the first automotive marketplace unicorn in Southeast Asia.

The fresh funding, which saw the participation of prominent Indonesia-based funds, including EV Growth, will be used to double down on the company’s expansion in Thailand and Indonesia and invest further in artificial intelligence capabilities, among others.

Founded in 2015, Carro provides a full-stack service for all aspects of car ownership and uses AI-powered technology to transform the car buying and selling experience. It challenges the traditional way of buying and selling cars through proprietary pricing algorithms and AI-enabled capabilities.

Its services include in-house financing solutions, innovative insurance products, flexible car ownership experience, and after-sales services.

“This is a huge milestone for us. We are grateful for the strong support from our investors, which reaffirms our belief in the transformative power of AI in the automotive industry to deliver exceptional customer experience,” said Aaron Tan, CEO and founder of Carro.

The startup said it will use the funds to strengthen its market position and expand its retail offering across Indonesia, Thailand, Malaysia, and Singapore – markets that have seen significant growth in the past year.

Carro will also enhance its portfolio of financial services by expanding beyond in-house loan financing, as well as accelerate the development of its AI capabilities.

“Carro is transforming the automotive industry in Southeast Asia by providing a seamless buying and selling experience for both consumers and car dealers,” said Greg Moon, Managing Partner of SoftBank Investment Advisers.

The investment is not a first for SoftBank Group in Carro. In 2016, SoftBank Group invested in the startup through SoftBank Ventures Asia, its venture capital arm.

In October 2020, Carro raised a total of about $110.5 million in debt financing and additional equity.