Key Sentence:
- Carsome Group, an online used car trading platform, announced Wednesday.
- That it had become Malaysia’s most giant tech unicorn after a $170 million funding round raised its value to $1.3 billion.
The latest MediaTek round of investors was semiconductor maker Cai Ming-kai. MediaTek, investment firm Catcha Group of tycoon Patrick Grove and Malaysian sovereign wealth fund Penjana Capital. Carson said one of the most significant state funds in the region had also joined the circle without revealing its name.
The company also provided $30 million in new loans.
The funding loop, MediaTek which Carsome says is its most significant capital investment. They will be used to expand its retail and auto finance businesses.
Carsome said the new capital would increase its opportunities for strategic investments as well as mergers and acquisitions. For example, last month, the used car platform partnered with Catcha Group to acquire Australian-listed competitor iCar Asia in a $200 million deal. The merging companies will target $1 billion in revenue and 100,000 vehicles in annual sales, according to Carsome.
“We are highly respected and encouraged by the trust and support of our investors,” said Eric Cheng. CEO of Carsome, in a statement. “With the implementation of an integrated e-commerce platform in Southeast Asia. Now further strengthened by the strengths of the ecosystem, we will reach even greater heights.”
Since then, it has grown into an automated trading platform collaborating with Malaysia, Indonesia, Thailand, and Singapore. The company has attracted investment from Gobi Partners, Asia Partners, Mitsubishi UFJ Financial Group, and others.
Carsome said it plans to release it possibly in the next 12 months.
The latest funding round underscores the increasing competition in Southeast Asia’s online used car market. As the pandemic continues to shift consumer preferences towards safer and more affordable transportation options.
Carro, a Singapore-based online car mall operated by Carsome, said it became a unicorn in June following a $360 million funding round led by SoftBank. The company said it is also considering creating a US listing for the next 18 to 24 months.
Carousell, an online classifieds marketplace based in the city-state, has also announced expanding its auto trading business to include business and financial offerings such as car loans with consumer platforms.