Carro Takes 50% Share of Car Rental Company "MPMRent" Worth 783 Billion Rupiah

Startups marketplace automotive Carro annexed 50% shares owned by PT Mitra Pinasthika Mustika Rent (MPMRent), a subsidiary of PT Pinasthika Mustika Partners Tbk (IDX: MPMX) worth $53,8 million or equivalent to 783,8 billion Rupiah. Through this strategic partnership, Car and MPMX will develop the O2O automotive ecosystem end-to-end in Indonesia.

In his official statement, the corporate action was agreed upon through the signing of a sale and purchase agreement between MPMX and Trusty Cars Pte Ltd (Carro) on May 31, 2022. Carro will hold MPMRent shares with a share ownership of 50% of the total issued and fully paid capital.

Based on the source data obtained DailySocial.id, MPMX also injected an investment into Carro of $25 million or around 361,4 billion Rupiah in the 2021 series C round.

MPMX Group CEO Suwito Mawarati believes this partnership is an important new chapter in bringing an integrated O2O automotive ecosystem, starting from marketplace, financing, vehicle rental, repair services, to after-sales, to serve the B2B and B2C markets in Indonesia.

Meanwhile, it is said that this strategic partnership can be realized thanks to the role of the investment company PT Saratoga Investama Sedaya Tbk as the parent shareholder of MPMX. "MPMX and Saratoga believe Carro can increase the strategic value of the company's business with a track record of success and extensive operational experience in the automotive ecosystem," said Suwito.

For information, MPMX is a leading automotive and transportation company founded by William Soeryadjaya in 1987. Meanwhile, Carro is a marketplace automotive companies operating in Southeast Asia, namely Indonesia, Thailand, Malaysia and Vietnam.

Strategic considerations

It was conveyed that this partnership became MPMX's ongoing effort to develop value (unlock value) from existing businesses, including investing in innovation and accelerating the company's digital transformation. Because Carro has an ecosystem online integrated from the auto market, financing, big data, vehicle database access, including technology computer vision and pricing algorithms.

By partnering with Carro, MPMRent can strengthen its position as the leading car rental market leader in Southeast Asia, providing access to a nationwide network of workshops, rental and auction locations, having a customer base, and maintaining strong operational capabilities.

In addition, this partnership will provide added value for customers and dealers to open access to a wider selection of quality used cars, meanwhile, provide better quality management and control practices, and continue to digitize MPMRent services for B2B customers.

Carro Co-Founder & CEO Aaron Tan added, "We remain committed to investing and advancing our business in Indonesia despite the macro and global uncertainties. We look forward to partnering with MPMX to drive growth and deliver a customer experience through hundreds of engineer and data scientist in Carro's group."

Similar action

This step also marks the increasingly fierce platform competition marketplace to win the Indonesian automotive market, such as Carsome, Carmudi, OLX, and Moladin.

Previously, similar actions above have been carried out by marketplace Carsome last year by investing in an offline car and motorcycle auction service company PT Universal Collection (UC). This investment allows Carsome to expand its network reach, access to financial providers and lease, and has the potential to enter the motorcycle market.

There's also Moladin The new pivot to focus on the used car buying and selling segment, is now available in more than 115 cities in Indonesia. Moladin strengthens its position with a strategy of empowering agent networks and an omnichannel platform to offer a seamless car transaction experience customized. Recently, Moladin reportedly pocketed series B funding worth $95 million or equivalent to Rp. 1,4 trillion.

Based on reports Ken Research title "Indonesia Used Car Market Outlook to 2025", used car sales in the country will be driven by adoption omnichannel, digitization of services and increasing demand in cities tier 2. Used car platforms are predicted to focus more on developing services globally end-to-end which allows consumers to transact online without having to visit showroom. 

Therefore, used car platforms considering the application of AI and 3D technologies to create a better user experience in performing car search and analysis. In addition, many dealers multibrand and independents are starting to enter the online used car market to increase their digital based transactions.