Carro, the Singapore-based auto marketplace, has formed a strategic partnership with investment firm Jardine Cycle & Carriage (JC&C) valued at over US$60 million. The collaboration aims to enhance their capabilities in automotive retail, particularly in the areas of used cars and aftersales services. JC&C, a Singapore-listed company with subsidiaries like Astra in Indonesia and Truong Hai Group in Vietnam, will acquire a stake in Carro and have a representative on its board. Similarly, Carro will hold an equal-value stake in JC&C subsidiary Republic Auto, a used-car dealer based in Singapore.
The partnership will focus on integrating their systems, leveraging JC&C’s network to access high-quality used car inventory, and transforming Republic Auto’s online services through Carro’s expertise. Additionally, Carro and JC&C plan to establish an aftersales joint venture, initially targeting the Singapore and Malaysia markets. This venture builds on Carro’s existing aftersales business, Carro Care, and aims to provide multibrand aftermarket workshop services combining offline and online offerings.
Carro recently achieved its highest-ever EBITDA of US$4 million in the financial year ending March 2023 and anticipates a 10x increase in EBITDA for the next financial year. The company operates not only in Singapore but also in Malaysia, Indonesia, Thailand, Japan, and Taiwan. While Carro has engaged in discussions with potential partners in Vietnam and the Philippines, there are no immediate plans for expansion in those markets.
In a separate development, Carro secured additional funding in February through a joint venture with insurtech firm ZA Tech. The partnership with ZA Tech will further strengthen Carro’s position in the market and support its growth initiatives.
Overall, the strategic partnership with JC&C and the collaboration with ZA Tech signify Carro’s commitment to enhancing its automotive retailing capabilities, expanding its aftersales services, and solidifying its presence in key markets across Southeast Asia.