Carsome Announces 2,8 Trillion Rupiah Equity and Debt Funding, Sharpens M&A Strategy
New investors involved include Catcha Group, MediaTek, and Penjacapan; the company's valuation has reached $1,3 billion
Carsome announced it has got new funding in a series D2 round worth $170 million or equivalent to 2,4 trillion Rupiah. In addition, they also get credit facilities (debt funding) $30 million to strengthen the auto finance business; complete the total funds raised by $200 million or 2,8 trillion Rupiah.
This influx of funding brings the company's valuation to $1,3 billion, cementing its position as unicorn in Malaysia.
This investment was followed by a number of companies, including Catcha Group, MediaTek, and Penjana Kapital. Also supported by previous shareholders, namely Asia Partners, Gobi Partners, 500 Southeast Asia, Ondine Capital, MUFG Innovation Partners, Daiwa PI Partners, and several others.
Previous news, Carsome has also planned to go public via SPAC vehicles on the United States stock exchange.
Ecosystem strengthening E-commerce integrated car
In his remarks, Carsome's Co-founder & Group CEO Eric Cheng said, the fresh funds raised allowed the company to accelerate traction growth while increasing its car financing business. He also revealed that he is ready to bring Carsome to become a platform E-commerce integrated car with the strengthening of a connected ecosystem.
Previously, Carsome has also launched a new strategy to embrace the B2C segment. Shown by opening several Experience Centers in several locations, including in Indonesia, enabling consumers to view and buy used car products that have been inspected by the Carsome team.
Initially Carsome's business model was more C2B. Inspecting and buying used cars from consumers, then throwing them to the pebinsis (in this case the dealership owner) for resale.
M&A strategy will be sharpened
Another thing that was also conveyed, this investment allows the company to sharpen its business consolidation strategy. Namely by making strategic investments into partner companies or other corporate actions in the form of: mergers & acquisitions (M&A).
This July 2021, Carsome has acquired PT Universal Collection, a car and motorcycle auction service company offline from Indonesia. Enables companies to expand network coverage, access to financial providers and lease, and has the potential to enter the motorcycle market. This initiative will also support the strategy omnichannel they.
In addition, the company has also established a partnership with iCar Asia, as a platform listing and automotive content. It is expected to increase the penetration rate of products in Carsome services.
Service competition in Indonesia
From the data submitted, on an annual basis, Carsome has bought and sold cars more than 100 thousand times. This equates to the company's revenue in the range of $1 billion. This means that the market is very large, so it is not surprising that The competition in this market is also very fierce.
Apart from Carsome, there are other regional players who also provide similar services, namely Carro. They both also serve consumers in Indonesia – also taking strategic actions with startups from Indonesia (Carro acquires Jualo).
Carro and Carsome also promote strategy online-to-offline by presenting outlets to assist the transaction process. Carro just inaugurated “Carro Automall Point” at the end of April 2021, now showroom The used car is already in three locations around Jabodetabek. Meanwhile, the Carsome Experience Center has reached 15 cities in Indonesia.
In Indonesia, there are also other players, namely OLX Autos (formerly BeliMobilGue) which has now been integrated with OLX's services. The main focus is more on buying cars from consumers — although now some of the products that have been inspected are also starting to be sold through OLX and other channels. online marketplace other.