Southeast Asia’s leading online used-car marketplace, Carro, has successfully raised $60 million in a recent funding round spearheaded by Japan’s sovereign wealth fund, Cool Japan Fund. Announced on Wednesday, the investment is earmarked for promoting Japanese vehicles, particularly plug-in hybrid electric models, across the Asia-Pacific region. Carro expressed confidence in its ability to significantly enhance the market presence of these vehicles in the area.
Carro, which operates in multiple markets including Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong, is also eyeing expansion into Australia. CEO Aaron Tan recently hinted at the company’s plans for a dual listing, with sources indicating a potential U.S. initial public offering (IPO) that could value the company at over $3 billion. This would mark the largest Southeast Asian listing in the U.S. since SEA’s $989.3 million debut in 2017 and the first major automotive tech and commerce startup from Singapore to go public in the United States.
Backed by prominent investors such as Temasek and SoftBank Group, Carro’s digital platform facilitates vehicle transactions between consumers and dealers, while also offering insurance, financing, and after-sales services. Cool Japan Fund, a government-backed private fund, aims to bolster Japan’s economy by increasing international demand for its products and services.
This strategic investment underscores Carro’s ambitious growth trajectory and its commitment to transforming the automotive market in the Asia-Pacific region.