Malaysia-based Carsome, a used car platform, has secured $19 million in Series B funding. Burda Principal Investments led the round with participation from return backers Gobi Partners, InnoVen Capital and Lumia Capital.
Kuala Lumpur – Thursday 8th March, 2018 – Carsome, Southeast Asia’s leading and fastest growing online used car platform, today announced that it has raised US$19 million in Series B funding. The company is supported by a mix of strong local and global investors based in Europe, China, USA, Japan and Singapore.
Leading this round is Burda Principal Investments, with existing investors Gobi Partners, InnoVen Capital and Lumia Capital following on. Carsome currently has operations in Malaysia, Singapore, Indonesia, and Thailand.
The funds will be used to scale and deepen Carsome’s foothold in Indonesia and Thailand – the region’s largest automotive markets with over 3.6 million used car transactions annually.
Eric Cheng, Co-Founder and CEO of Carsome, explains that the new funds will help Carsome to advance its ambitionsto be the ‘new default way’ ofselling used cars within the region. “Currently, Southeast Asia’s used car industry – estimated to be valued at over US$30 billion yearly – is still highly fragmented, inefficient and lacks transparency. Carsome takes on these problems by providing a seamless and transparent online used car selling process; one that provides users an easier way to sell their cars to dealers nationwide in a fast, fair and free manner.”
Carsome’s monthly total transaction value has increased by more than fourfold since January 2017. Total car sales facilitated on its platform have more than quadrupled with more than 70% of the transactions being done inter-city, which is a strong testament to the value proposition and product fit of Carsome’s business model. They have also grown their staff strength to over 150 in all four operating countries to cater for the rapid expansion of their business.
Albert Shyy, Principal at Burda Principal Investments, said, “We feel Southeast Asia’s burgeoning automotive sector is in the early stages of a digital transformation and believe there is a tremendous opportunity for Carsome to bridge the offline-to-online space. We are thrilled to join them as they build the leading used car platform in the region.”
As part of the expansionary move, Carsome aims to further raise its market share within the Southeast Asian market by strengthening its brand awareness via more localized marketing content, as well as focusing on delivering a superior customer experience for the carselling process on its platform. Carsome will also be introducing new product verticals such as financing and warranties to empower car dealers and to make it easier for customers to sell their vehicles on its platform.
“Gobi is backing Carsome once more because the management team has consistently beat expectations. With their proven track record, Carsome is in an enviable position to capture the unprecedented growth in ASEAN’s used car market. This round of funding will put Carsome in the driver’s seat for Southeast Asia,” said Thomas Tsao, Founding Partner at Gobi Partners.
Carsome is Southeast Asia’s leading and fastest growing online used car platforms. Through its online bidding portal, customers are able to sell their vehicles directly to dealers nationwide. Carsome facilitates the entire carselling process from inspection, to valuation, bidding and payment as well aslogistics needs, allowing the customers to sell their cars as fast as one day with zero charges and minimal effort.
Headquartered in Malaysia, the company has since expanded to Indonesia, Thailand and Singapore and has one of the largest dealer networks with more than 2,500 registered dealers on its platform. Since its inception in 2015, Carsome has registered more than 200,000 bids for cars, with over 70% of the transactions being done inter-city.
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About Hubert Burda Media
Hubert Burda Media, headquartered in Munich, is an international technology and media company with over 540 brands and products that are oriented to the needs of consumers. Burda has 175 million users and approximately 60 million paying consumers. Its commercial success is driven by over 10,000 employees around the world: Burda is active in 20 markets, above all in Germany – where it is one of the countries’ largest media groups – in Europe, the United States and Asia. Innovation is the driving force behind the organization, which builds on its original roots and values as a family-owned company.
Burda has been a pioneer in adopting digital technology and is a trusted partner for the long-term success of digital business. With DLD (Digital, Life, Design) Hubert Burda Media has established a global network on innovation, digitization, science and culture with conferences around the world. Burda Principal Investments is the company’s unit to provide growth capital to digital ventures in the United States, Europe, and Asia.
About Gobi Partners
Founded in 2002, Gobi Partners is a regional venture capital firm with an investment focus on early and growth-stage innovation and technology companies. Headquartered in Shanghai, Gobi has seven offices
across China, Hong Kong, Kuala Lumpur, Singapore, and Jakarta. The firm has raised nine funds to date, and has invested in over 170 portfolio companies across China and ASEAN. For more information, please visit www.gobivc.com