Carsome Group, a web platform for getting and selling used cars, said on Wednesday that it had become Malaysia’s largest tech unicorn after a $170 million funding round boosted its valuation to $1.3 billion.
Investors within the latest round included billionaire Tsai Ming-kai’s semiconductor maker MediaTek, tycoon Patrick Grove’s investment trust Catcha Group and Malaysian government fund Penjana Kapital, among others. Carson said one of the most important sovereign wealth funds within the region also joined the round, without disclosing its name.
The company also secured new credit facilities of $30 million. The financing round, which Carsome said was its largest-ever equity investment, is going to be wont to expand the firm’s retail and auto-financing businesses.
Carsome said the fresh capital would boost its capabilities in strategic investments, also as mergers and acquisitions. The used car platform partnered with Catcha Group last month to accumulate Australia-listed rival iCar Asia during a $200 million deal. The combined company is getting to reach $1 billion in revenue and 100,000 vehicles in annual transactions, consistent with Carsome.
“We are deeply honored and encouraged by the arrogance and support accorded by our investors,” Carsome’s CEO Eric Cheng said during a statement. “We are ready to realize even greater heights while rolling out Southeast Asia’s integrated car e-commerce platform, now further solidified by various strengths within the ecosystem.”
Carsome was established in 2015 as a vehicle comparison site. Since then, it’s transformed itself into a pre-owned car trading platform with operations in Malaysia, Indonesia, Thailand, and Singapore. The firm has attracted investments from the likes of Gobi Partners, Asia Partners, Mitsubishi UFJ Financial Group, et al. . Carsome has said that it plans to travel public, possibly within subsequent 12 months.
The latest funding round highlights the intensifying competition in Southeast Asia’s online used car market because the pandemic continues to drive consumer preferences toward safer and cheaper transportation options.
Carro, a Singapore-based online auto mall that goes toe-to-toe with Carsome, said it had become a unicorn in June after a $360 million funding round led by SoftBank. the corporate said that it’s also mulling a U.S. listing within the next 18 to 24 months.
Carousell, a web classified marketplace headquartered within the city-state, has also announced plans to expand its auto trading businesses with a consumer-to-business bidding platform and financial offerings like auto loans.