Carro heads Down Under. Is an IPO on the horizon?
The Singapore-based company is currently hoping to close 2025 with US$80 million in Ebitda
CARRO, an online automotive marketplace based in Singapore, is making its first acquisition in Australia in a move that could help accelerate its path to a possible IPO.
The company is acquiring a “sizeable” local automotive business in the country, and the deal is expected to close before the end of 2025, co-founder and CEO Aaron Tan said at this year’s Tech in Asia Conference in Jakarta.
Although he did not disclose the deal’s value and specifics, he said the acquisition will follow Carro’s approach to Hong Kong’s Beyond Cars.
Carro helped the second-hand car platform expand through capital support, tech integration, and operational know-how after acquiring it in 2024.
Tan shared that once the acquisition is done, the Australian firm is expected to contribute around 20 per cent of Carro’s overall revenue within the first year.
He added that Carro will look at a possible initial public offering (IPO) after the company reaches earnings (Ebitda) of US$100 million.
The Singapore-based company is currently hoping to close 2025 with US$80 million in Ebitda. Its 2024 Ebitda was around US$40 million.
Carro cut its operating losses by 92 per cent to US$6.7 million in its financial year ending March 2024. While it posted a year-on-year decline in revenue growth of about 6 per cent to US$781 million, gross profit margins improved from 8 to 12 per cent during the same period.
Tan credited Carro’s growth to financial discipline.
“Many competitors went all out to burn money, but we didn’t,” he said.
With Australia’s used-car market projected to reach US$81 billion by 2030, the company’s expansion appears well-timed.
Carro’s entry into the country follows a string of earlier acquisitions across Asia, including a 50 per cent stake in Indonesia-based Mitra Pinasthika Mustika Rent in 2022 and Thai classified ads platform Kaidee in 2023.
Apart from Singapore, Carro also operates in Malaysia, Indonesia, Thailand, Taiwan, Japan, and Hong Kong.
The used-car marketplace has been on a roller-coaster ride in recent years, with rising interest rates driving investors away. A shortage of new cars has also pushed up demand and prices for used vehicles.
With affordability declining, several regional players have struggled to stay afloat. India’s Cars24 exited South-east Asia in 2023, while Malaysia’s Carsome laid off hundreds of employees in the same year as part of a cost-cutting drive.
Zero pressure on IPO
Market speculation about an IPO continues, but Tan emphasised that there’s “zero pressure” on Carro to go public.
“The reason why I feel now is a good time is simply because I feel we have visibility,” he explained. “But if you ask me, am I pressured by investors like SoftBank? The answer is no.”
SoftBank invested in Carro in 2021.
Tan said that the company has yet to decide where it will list, though the options are likely to be the US, Singapore, or Hong Kong.
Without commenting on the potential valuation, he noted that Carro could look to raise around 10 to 15 per cent of its value through the IPO.
Tan added that for now, the company’s priority is to maintain consistent performance before pursuing an IPO.
“That’s what investors care about,” he said. TECH IN ASIA
