Automotive marketplace Carro has invested US$30 million into Malaysia-based car bidding platform myTukar to digitise the local used-car dealer industry. With this strategic investment, Carro aims to power myTukar to digitally enable the traditional used car dealerships across Malaysia, boost inter-city car sales and help local businesses grow.
Launched in 2018, myTukar is a Malaysian online car bidding platform that allows private sellers to schedule a vehicle inspection with a sales service agent. The platform then helps to facilitate a live bidding process amongst more than 1,500 dealers that myTukar currently works with nationwide.
According to Carro, its entry into Malaysia via myTukar is aimed at focusing on helping traditional car dealerships connect with private sellers via eCommerce channels and ultimately grow revenues. Initially established in Singapore, Carro has since expanded to Indonesia and Thailand to create a marketplace for automobiles.
Through a funding round recently, it bagged US$30 million and acquired Indonesia’s C2C marketplace platform Jualo.com. Securing that funding brought Carro’s total funding amount to US$90 million, with over US$60 million raised from a previoud round by existing investors Insignia Ventures, B Capital Group, Singtel Innov8, Golden Gate Ventures and Alpha JWC.
Aaron Tan, CEO and founder of Carro said the next logical step after expanding in Indonesia and Thailand was Malaysia, as it is one of the leading automotive markets and digitally-savvy countries in Southeast Asia.
“Through myTukar we plan on working with thousands of dealers across Malaysia to catalyse the growth of the used car market. Over the next few years, we plan to triple their existing transaction volume to over US$500m,” he added.
Meanwhile, Fong Hon Sum, CEO and founder of myTukar said Carro’s investment will be crucial for the company’s vision. With Carro’s technological support and regional experience, myTukar aims to enhance the digital experience of Malaysian car dealerships across the country.
“Malaysia’s used car marketplace has been underperforming over the last decade, chiefly due to used car dealerships facing stagnating sales during this period. To grow their revenues, traditional dealerships here must embrace digital technology to reach a wider customer base. 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,” he added.
Recently, Carro launched a regional branding campaign and collaborated with budget carrier Jetstar for in-flight advertising. Revolving around the “ease” of selling a car in one day, the campaign ads will run across Southeast Asian routes taken by Jetstar such as Singapore, Jakarta and Bangkok, where Carro has presence in or is expanding to. According to Carro group chief marketing officer Manisha Seewal, in-flight advertising gives 100% share of voice and strengthens brand recall, which is critical for Carro in aggressively expanding in the region.