SINGAPORE: Carro, billed as Southeast Asia’s largest and most profitable online used car platform, has released a strong set of results for its latest financial year ending March 2023 (FY2023).
Carro recorded its best ever full-year positive EBITDA (earnings before interest, taxes, depreciation and amortisation) of USD4 million.
In a statement, the group said EBITDA achieved an annualised run-rate of USD35 million and a 4% EBITDA margin towards the end of the last financial year.
Full-year revenue exceeded USD800 million, on the back of a USD1.5 billion Gross Merchandise Value (GMV).
Carro is the parent company of myTukar which is a fast growing digital used car platform in Malaysia.
Founded in 2015, Carro is Southeast Asia’s largest used car marketplace.
In FY2023, Carro sold and financed over 120,000 vehicles across Indonesia, Thailand, Malaysia and Singapore.
Genie, Carro’s fintech business, also recorded strong growth across the region and kept non-performing loans (NPL) at 0.2%, which is significantly below industry benchmarks.
The overall loan book grew to over USD350 million.
Carro recently expanded its reach to Japan and Taiwan.
Headquartered in Singapore, the unicorn startup is supported by more than 4,500 employees across Asia-Pacific and has raised over S$700M from Softbank Vision Fund and several sovereign funds.
Aaron Tan, co-founder and CEO of Carro says, “We are laser-focused on improving profitability and unit economics while optimising productivity and cost structure. It’s not about selling more cars; it’s about capturing more value and recurring income streams. As other businesses continue to focus on GMV growth at all cost, we strategically doubled down on building a sustainable business model and leveraged our ecosystem to drive more recurring ancillaries across the entire ownership and usership lifecycle. Our fintech and mobility business made significant strides in FY2023. We have also laid foundations for stronger growth in our insurtech business via strategic partnerships with ZA Tech and MSIG., as well as aftersales.”
Ernest Chew, chief financial officer of Carro says “We expect to achieve 10 times EBITDA this year. Even if we sold zero cars, we would be super-EBITDA positive today. Nearly 60% of our gross profit is from recurring ancillaries. This is the real benefit of a true, sustainable ecosystem-driven business model. We have almost no operational burn currently and EBITDA is positive across all our core markets. We have also built a fortress balance sheet and diversified our lending relationships to 17 financial institutions, who have offered us very competitive cost of financing.”
Keyword: Used car platform Carro continues strong financial performance