Used Car Market Gets USD 30 Million Injection by Carro

Used Car Market Gets USD 30 Million Injection by Carro

September 19, 2019

Southeast Asia’s largest automotive marketplace Carro will digitise Malaysian-based car-bidding company myTukar as part of its plans for aggressive expansion into the used car market in the region.

Carro, Southeast Asia’s largest automotive marketplace, announces its investment of USD30 million into Malaysia-based car bidding platform myTukar to digitise the local used car dealer industry. With this investment, Carro says its technology will power myTukar to digitally enable the traditional used car dealerships across Malaysia, boost inter-city car sales and help local businesses grow.

Founded in 2015, Carro says it seeks to transform car sales for both private sellers and dealers. Initially established in Singapore, the company has since expanded to Indonesia and Thailand to create the region’s largest marketplace for automobiles. Across the three markets, Carro says it has facilitated over USD 500 million worth of transactions in 2018.

Carro’s CEO and Founder Aaron Tans says its entry into Malaysia via myTukar signifies the latest step in the company’s regional expansion. It aims to help traditional car dealerships connect with private sellers via e-commerce channels.

Tan says the move is also aimed at helping dealers reach out to a larger pool of private sellers to grow their revenues.

“Malaysia is one of the leading automotive markets and most digitally-savvy countries in Southeast Asia, so this was the next logical step for us after expanding in Indonesia and Thailand. Through myTukar we plan on working with thousands of dealers across Malaysia to catalyse the growth of the used car market. Over the next few years, we plan to triple their existing transaction volume to over USD 500 million,” says Tan.

Launched in 2018, myTukar is a Malaysian online car bidding platform that says it seeks to transform the traditional pre-owned car ownership process in the country.

Through its e-commerce channel, myTukar allows private sellers to schedule a vehicle inspection with a sales service agent. Following which, the platform will help to facilitate a live bidding process among more than 1,500 dealers that myTukar currently works with nationwide.

According to myTukar CEO and Founder Fong Hon Sum, the company aims to provide sellers with a more transparent and worry-free experience. In 2018, the company partnered with a local vehicle warranty provider to offer up to six months’ warranty for vehicles traded on its platform.

“Malaysia’s used car marketplace has been underperforming over the last decade, chiefly due to used car dealerships facing stagnating sales during this period. To grow their revenues, traditional dealerships here must embrace digital technology to reach a wider customer base. Malaysia’s used car dealerships are a pillar of its automotive sector, and therefore we believe our platform can help them bridge the digital divide to reach today’s tech-savvy car buyers and sellers. Carro’s investment will be highly crucial for our vision. With their technological support and regional experience, we believe that we can work together to enhance the digital experience of Malaysian car dealerships across the country,” says Fong.

(Ed. Carro is an automotive marketplace that offers a full-stack service for all aspects of car ownership. Founded in 2015, Carro started its regional expansion into Thailand and Indonesia in 2017. As of August 2019, Carro raised over USD 100 million from SoftBank Ventures Asia, EDBI Pte Ltd, Insignia Ventures Partners and B Capital Group.)