Malaysian internet car auctioneer Carsome raises $50 mil from Japan, U.S., Chinese financiers

18, Dec. 2019

Photo by Erik Mclean on Unsplash
Photo by Erik Mclean on Unsplash

KUALA LUMPUR, NNA - Malaysian internet used-car auctioneer Carsome Sdn, Bhd. has raised a total of $50 million from investors including new Japanese, U.S. and Chinese financiers to shore up its business by offering financing to car dealers and consumers.

Mitsubishi UFJ Financial Group’s wholly-owned subsidiary MUFG Innovation Partners Co., Daiwa Securities Group’s private equity arm Daiwa PI Partners Co., U.S. equity fund Endeavor Catalyst and Ondine Capital of China joined in Carsome's series C fundraising along with other funds.

Daiwa PI Partners invested $5 million in Carsome, while MUFG Innovation Partners did not disclose an amount of investment.

Carsome, founded in 2014 in Kuala Lumpur, operates an internet used-car trade platform in Malaysia, Singapore, Indonesia and Thailand. The company handles more than 40,000 car transactions annually valued at $300 million, with more than 6,000 car dealers in 50 locations in participating countries.

“In Southeast Asia, 4 million used-cars are traded annually,” Carsome CEO Eric Cheng said. “We hold a 1-percent share (of the market) and we aim to expand it.”

To this end, Cheng plans to expand into other locations and enhance loans to car dealers and consumers over the next year.

Cheng expects Carsome’s businesses in Singapore, Indonesia, and Thailand to reach a break-even point in 2020, while its Malaysian operation already makes a profit.

Mitsubishi UFJ Financial Group intends to support Carsome’s business growth while seeking strategic alliances among its partner banks in Southeast Asia, such as PT. Bank Danamon Indonesia and the Bank of Ayudhya Public Co., also known as Krungsri, both subsidiaries of MUFG Bank Ltd., the group’s core lender.