Carro, an automotive marketplace based in Singapore, has invested US$30 million in Malaysian car bidding platform MyTukar.
As part of the strategic investment, Carro will provide technology that will help MyTukar digitally enable traditional used car dealerships across Malaysia, boost inter-city car sales, and help drive growth in local businesses, according to a statement.
Founded in 2015, Carro offers a full-stack service for both private sellers and dealers, including an in-house financing solution, after-sales services, and a car subscription service. It has since expanded to Indonesia and Thailand, claiming to have facilitated over US$500 million worth of transactions last year across the three markets.
The company’s entry into Malaysia marks its latest step in its regional expansion plans focused on helping traditional car dealerships connect with private sellers through ecommerce channels.
“Through MyTukar we plan on working with thousands of dealers across Malaysia to catalyze the growth of the used car market,” said Carro founder and CEO Aaron Tan. “Over the next few years, we plan to triple their existing transaction volume to over US$500 million.”
MyTukar, which was launched just last year, operates a platform that helps facilitate live biddings for its more than 1,500 partner dealers. It also allows private sellers to schedule a vehicle inspection with a sales service agent. The company recently partnered with a local vehicle warranty provider to offer up to six months of warranty for vehicles traded on its platform.
“Malaysia’s used car dealerships are a pillar of its automotive sector, and therefore we believe our platform can help them bridge the digital divide to reach today’s tech-savvy car buyers and sellers,” said MyTukar founder and CEO Fong Hon Sum.
Earlier this year, Carro announced that it had raised an additional US$30 million on top of an earlier US$60 million round to help fund its acquisition of Indonesian marketplace Jualo. Carro was expecting to “further boost the reach of our proprietary technology platform” in the region through the acquition, Tan said.