Singapore-listed automotive group Jardine Cycle & Carriage Limited (JC&C) and used car marketplace Carro have announced a $60-million strategic partnership that will see JC&C picking up an interest in Carro.
Carro will also acquire an interest of equivalent value in JC&C’s used car subsidiary, Republic Auto, one of the largest used car dealers in Singapore, according to an announcement.
Through mutual investments in each other’s existing used automobile and after-sales businesses, the two companies are committed to collaborating to define their respective future growth trajectories.
Under the partnership, JC&C and Carro will work together on a variety of platform and data initiatives across the used car and after-sales value chains that will significantly increase upstream efficiencies and broaden downstream markets thanks to the partnership’s combined ecosystems and complementary expertise, a release said.
As a co-owner of Republic Auto, Carro will change and improve Republic Auto’s digital services to increase operational efficiency and achieve better optimisation. It will also appoint a representative to the board of Republic Auto.
“JC&C chose to partner with Carro because we look beyond used car wholesaling and retailing, setting our sights on the larger ecosystem that facilitates deeper cooperation in financing, insurance, and after-sales. The partnership will enable us to scale up our operations and capabilities faster by leveraging our combined areas of expertise,” said JC&C managing director for direct motor interests Wilfrid Foo.
“By tapping on JC&C’s strong networks and deep understanding of the region, we are confident we will continue to stay ahead of the competition and further boost Carro’s market position,” said Carro CEO Aaron Tan.
JC&C is the investment holding company of the Jardine Matheson Group in Southeast Asia. Listed on the Mainboard of the Singapore Exchange and a constituent of the Straits Times Index and MSCI Singapore Index, the group is 76% owned by Jardines.
Founded in 2015, Carro is Southeast Asia’s online used car marketplace with a strong presence in key markets across the Asia Pacific, including Malaysia, Indonesia, and Thailand, and has recently expanded its reach to Japan and Taiwan.
Headquartered in Singapore, the unicorn startup is supported by more than 4,500 employees across the Asia Pacific and has raised over $1 billion in debt and equity from Temasek, SoftBank Vision Fund, and several other sovereign funds.