Carro, a Singapore-headquartered digital automotive group and marketplace with operations across Southeast Asia, has raised $60 million in a funding round led by Cool Japan Fund, a private fund backed by the Japanese government.
The proceeds from the round will be largely deployed in fuelling demand for Japanese cars across the markets Carro has a presence in, according to a news release. The round also saw participation from multiple, unnamed new investors.
Co-founder and CEO Aaron Tan said, “Japanese cars continue to be reliable and trustworthy with their advanced automotive technologies, including fuel cell innovations and superior safety features. We are confident we can increase the market share of Japanese plug-in hybrid electric vehicles (PHEV) in times to come.”
Tan elaborated on the funding’s focus on used PHEVs, saying that the demand for used and new PHEVs in Southeast Asia is expected to grow due to economic expansion, government subsidies in Indonesia and Thailand, and the rise of the middle-income population.
Cool Japan Fund President, CEO and COO, Kenichi Kawasaki, added, “Through this investment in Carro, Cool Japan Fund aims to boost demand for Japanese cars in the region and reinforce their value by showcasing Japan’s advanced automotive technologies.” Founded in 2013, Cool Japan Fund is a government-backed private fund supporting Japan’s economic growth by expanding the overseas demand for Japanese products and services.
The new funding closely follows Carro’s plans to expand to Australia and pursue up to three mergers and acquisitions in the next quarter. The latest growth strategy is part of the company’s potential $500 million IPO, which CEO Tan recently hinted at being a dual listing on a bourse in the U.S., Singapore, or Hong Kong.
Carro has raised over $600 million in funding to date and has 5,000 employees across the Asia Pacific region. The company’s suite of services includes Carro Care (after-sales), Genie Financing Services and Coverro (insurance). Carro recently teamed up with Hong Kong-listed fintech company SY Holdings to expand its auto financing services.
