Carsome bags US$290m in funding, eyes regional expansion of retail brand

Carsome Group has bagged US$290 million in a Series E round of funding. The funds, which brings the company’s valuation to approximately US$1.7 billion, will be used to accelerate the company's investment in people, product, technology, data capability, infrastructure, and regional expansion of its retail brand, Carsome Certified, across key markets in Malaysia, Indonesia and Thailand.

The funding was jointly led by Qatar Investment Authority, 65 Equity Partners and Seatown Private Capital Master Fund. The round also saw participation from investors such as Mediatek, Sunway, Gokongwei Group, YTL Group, and Taiwan Mobile. According to Carsome, this latest funding also further solidifies its position as an integrated eCommerce auto platform in Southeast Asia.

The Group previously bagged US$170 million in a Series D2 round of funding in September last year, which was used to focus on the growth and expansion of its B2C business, as well as boost its capabilities in strategic investments and mergers and acquisitions. A+M has reached out to Carsome for comment

As of September 2021, the company opened at least seven B2C retail centres known as Carsome Experience Centers across Malaysia, Indonesia, and Thailand. The company had also opened its first vehicle reconditioning centre in Malaysia to add to its array of retail services and boost consumer confidence in its Carsome Certified cars. 

In July last year, Carsome acquired a Jakarta-based car and motorcycle auction service, Universal Collection. A strategic partnership was also struck with iCar Asia, with Carsome acquiring 19.9% of iCar Asia from Catcha Group. A joint proposal was also inked between Carsome and Catcha Group to iCar Asia's independent directors to acquire the balance of 80.1% of iCar from its shareholders. This acquisition of iCar cemented Carsome's status as a tech unicorn in Asia. 

The company also brought some fresh faces on board last year. In August, the former group account director from Ogilvy, Melanie Mei took over as the company's new head of marketing in Malaysia. Derek Tan also joined the team as chief brand officer in March to lead the growth of Carsome’s brand, marketing and communications. That same month, group CMO group Danny Chin took on the role of chief expansion officer. Prior to his new role, he was leading all of Carsome’s brand marketing, consumer marketing, and trade marketing activities across the region with offices in Malaysia, Singapore, Thailand, and Indonesia.

Separately, Carsome tied up with Tealive in November last year to set up Carsome Inspection Points at selected Tealive outlets nationwide. With this partnership, Carsome's co-founder and group CEO, Eric Cheng said then that it will enable both companies to leverage each other's expertise and retail presence.

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