Singapore-based online used car platform Carro has acquired Hong Kong-based peer Beyond Cars.
According to a company statement, which did not divulge the financial details of the acquisition, Hong Kong is Carro’s seventh market after Singapore, Malaysia, Indonesia, Thailand, Japan, and Taiwan.
Beyond Cars’ co-founder and CEO Garry Yu and COO Luke Yip will continue to lead the company, integrating Carro’s data-driven platform and full-suite technology, including AI capabilities, said the statement. Garry will report directly to Fong Hon Sum, Carro CEO of International Marketplace.
Since its founding in 2016, Beyond Cars has developed into an ecosystem that provides end-to-end solutions for anyone looking to buy or sell a vehicle, including consignment services, dealer financing, hire-purchase financing, and insurance.
The company has been profitable for three years, and Carro is looking to accelerate its growth, with an expected Compound Annual Growth Rate (CAGR) of over 50%, in the next three years.
“We see huge potential in Hong Kong in the coming years,” said Carro’s Co-Founder and Group CEO Aaron Tan in a company release. Tan added that Beyond Cars leverages e-commerce channels and technology in Hong Kong’s used car market, and they share business goals and a common strategy.
According to a company statement, Hong Kong is also seeing a strong demand for electric vehicles (EVs), partly due to government waivers and its pledge to end the use of petrol-powered vehicles after 2035.
“The high penetration of EVs in Hong Kong will enable us to further enhance our pricing algorithms and provide end-to-end solutions tailored to EVs,” says Tan.
Additionally, Carro will work to expand Beyond Cars’ network of partnerships and develop ancillary services in Hong Kong in the areas of insurtech, financing, and aftersales.
According to a Reuters report towards the end of last year, Carro was in talks with potential investors to raise over $100 million ahead of a possible US listing in 18 months. The fundraising could value Carro, which has a valuation of over $1 billion, even higher, the report added.
Carro’s platform allows consumers and dealers to buy and sell vehicles, as well as provides insurance and financing services. It competes with the likes of Carsome and Carousell in Southeast Asia.
Carro has raised over $1 billion in debt and equity from investors including Japan’s SoftBank Corp and Singapore’s sovereign wealth fund GIC.
It posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of over $4 million in June, according to its press release in August 2023.