Carro, a Singapore-headquartered auto marketplace with operations across Southeast Asia, is planning to expand to Australia in the near future, and co-founder and CEO Aaron Tan says this geographic expansion could be accompanied by up to three M&A deals in the next quarter as the company prepares for a potential IPO, Reuters reports.
These expansion plans are part of Carro’s pre-IPO strategy, with Tan noting that the IPO — rumored to be worth $500 million at a valuation of $3.0 billion — could be a dual listing, with one of these listings likely to be on a U.S. exchange. Other bourses under consideration include Hong Kong and Singapore.
He adds that the IPO is subject to Carro’s financial performance, with an EBITDA of $120–$150 million in the next year more favorable for a listing. The company has already begun discussions with banks, including HSBC and UBS, about the IPO, according to Tan.
Carro has raised over SGD700 million ($546 million) in funding to date and has 5,000 employees across the Asia Pacific region. In the 12 months to March 2024, Carro recorded SGD1.1 billion in revenue.
The company’s suite of services includes Carro Care (after-sales), Genie Financing Services and Coverro (insurance). It recently teamed up with Hong Kong-listed fintech company SY Holdings to expand its auto financing services.
