Singapore startup Carro announced today that it has invested USD 30 million in Malaysia-based car bidding platform myTukar to digitize the local used car dealer industry.
This news came after Carro raised USD 30 million funding in August to fuel its expansion in Southeast Asia, starting with the acquisition of Indonesia’s C2C marketplace Jualo.
According to Carro, it is wrapping up its regional expansion with this investment.
Its technology will power myTukar to digitally enable the traditional user car dealerships across Malaysia, boost inter-city car sales, and help local businesses grow.
Currently, Carro is focused on helping traditional car dealerships connect with private sellers via e-commerce channels.
While Carro seeks to help the traditional dealers expand their market reach across the country, the move is also aimed at helping the dealers reach out to a larger pool of private sellers to grow their revenues.
Plans to triple myTukar’s transaction volume to over USD 500 million
Founded in 2015, Carro seeks to transform car sales for both private sellers and dealers.
It has since expanded to Indonesia and Thailand and is now the largest automobile marketplace in Southeast Asia. It has transacted over USD 500 million worth of cars across all three markets in 2018.
“Malaysia is one of the leading automotive markets and most digitally-savvy countries in Southeast Asia, so this was the next logical step for us after expanding in Indonesia and Thailand,” said Aaron Tan, CEO and founder of Carro.
“Through myTukar, we plan on working with thousands of dealers across Malaysia to catalyze the growth of the used car market. Over the next few years, we plan to triple their existing transaction volume to over USD 500 million.”
Launched in 2018, myTukar is a Malaysian online car bidding platform that seeks to transform the traditional pre-owned car ownership process in the country.
Through its e-commerce channel, myTukar allows private sellers to schedule a vehicle inspection with a sales service agent. Following which, the platform will help to facilitate a live bidding process amongst more than 1,500 dealers that myTukar currently works with nationwide.
To provide sellers with a more transparent and worry-free experience, myTukar has partnered with a local vehicle warranty provider last year to offer up to six months’ 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 Fong Hon Sum, founder and CEO of myTukar.
“Carro’s investment will be highly crucial for our vision. With their technological support and regional experience, we believe that we can work together to enhance the digital experience of Malaysian car dealerships across the country.”
This article first appeared on the Vulcan Post.