Singapore-based wholesale automotive marketplace company Carro, has announced it has raised the equivalent of US$110 million in debt financing and additional equity.
Investors that participated in the round of funding are Mitsubishi Corporation and MS&AD Ventures, the venture arm of MS&AD Insurance Group Holdings.
According to Carro’s statement this development comes on the backdrop of the company achieving record high in monthly revenues, claiming to achieve over 500% year-on-year revenue growth in September. The statement also notes that the Carro is on track to reach S$1 billion (equivalent of US$736.7 million in current exchange price) in revenue in two years.
“Our strategic partners will help turbo-charge our growth. The funds raised showcase the trust from our financial backers as we remained EBITDA positive throughout the COVID-19 pandemic. In fact, we have recently hit record high monthly revenues and EBITDA,” said Carro’s CFO Ernest Chew.
Launched in 2015, Carro is a subscription-based car service, which enables consumers to select a plan and drive off with a car of their choice without the hassle of traditional car ownership.
“Carro’s growth journey has been about using technology to bring a highly differentiated car buying experience that is seamless and transparent. COVID-19 has pushed the envelope for innovation in the auto market; the current economic slowdown means customers are looking for value-for-money cars but are also concerned about their safety. We expect more customers in the region will seek digital purchasing solutions. Hence, we will continue to leverage technology to make car ownership safer, efficient and delightful.,” said Chew added.