Singapore’s Carro drives to Malaysia with a US$30M investment into car bidding platform myTukar
Carro, a wholesale automotive marketplace headquartered in Singapore, has invested US$30 million in Malaysia-based car bidding platform myTukar.
With this strategic investment, Carro’s technology will power myTukar to “digitally enable the traditional used car dealerships across Malaysia and boost inter-city car sales”.
Carro will focus on helping traditional car dealerships connect with private sellers via e-commerce channels.
“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,” said Aaron Tan, CEO and Founder of Carro.
“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 US$500 million,” he added.
Founded in 2015, Carro is a subscription-based car service, which enables consumers to select a plan and drive off with a car of their choice without the hassle of traditional car ownership. Carro rolled out this innovative service to cater to today’s generation of drivers, who wish to enjoy the convenience of owning a car without needing to worry about annual depreciation and unexpected expenses such as repairs, roadside assistance and insurance premiums.
Carro is backed by SoftBank Ventures Asia, EDBI, US-based charity Dietrich Foundation, NCORE Ventures, and Hanwha Asset Management.
Launched in 2018, myTukar is a Malaysian online car bidding platform that 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 this, the platform will help to facilitate a live bidding process amongst more than 1,500 dealers that myTukar currently works with nationwide.
“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,” said Fong Hon Sum, CEO and Founder of myTukar.
“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,” Hon Sum added.