Southeast Asian used car marketplace Carsome announced on Monday that it has raised fresh capital, via a mix of equity and debt, in its latest financing round.
While the actual quantum of the funds raised was not disclosed, the Malaysia-based company said the round brings the group’s liquidity position to $200 million.
The equity funding round was participated by existing investors 65 Equity Partners, Seatown Private Capital Master Fund, Qatar Investment Authority, Gobi Partners, and Asia Partners.
It also attracted a long-term debt facility from EvolutionX Debt Capital (EvolutionX), a growth-stage debt financing platform that backs technology companies in Asia.
The investment marks Singapore-based EvolutionX’s first in Southeast Asia. The investment firm provides less dilutive financing to technology-enabled companies across Asia, with a focus on China, and India.
“Profitability is just one of the milestones in our long-term capital planning, and we will continue to invite the right partners who can add strategic value at different stages of our growth,” Carsome’s group president and CFO Juliet Zhu said.
The close of the funding round comes as Carsome announced early this month that its revenue grew 250% in 2022 and that it has achieved operation profitability for the first time in the first quarter this year.
The unicorn startup also put to rest concerns regarding its financial health by confirming a robust liquidity position of over $150 million at the ime. This position, the company said, gives it sufficient runway beyond its break-even point.
Founded in 2015 by Cheng and Teoh Jiun Ee, Carsome started off with vehicle inspection, ownership transfer, and car financing, before moving on to provide end-to-end solutions for car buyers and dealers.
As of October 2022, Carsome earns around 60% of its revenue from its home country Malaysia, 25% from Indonesia, and 15% from Thailand. It also operates in Singapore.
The group today claims to own the largest auto digital audience footprint of more than 15 million monthly active users through its content and media ecosystem, including the brands under iCar Asia and Wapcar.
The company raised $290 million in a Series E funding round in January 2022, ahead of a planned IPO. The round, which raised its valuation to approximately $1.7 billion, was jointly led by SeaTown Holdings, Qatar Investment Authority, and 65 Equity Partners. Both SeaTown and 65 Equity Partners are backed by Singapore state investor Temasek Holdings.