Online Used Car Retailer Carro Reports Record Revenue of $464 Million | AsiaTechDaily
body, Southeast Asia’s largest online used car retailer, announced that it more than doubled its revenue and gross profit to a record high in its last financial year, making over 650 million Singapore dollars ($464 million) in revenue. It is currently registering over S$1.3 billion in current revenue and is on track to generate another 2x revenue growth in this financial year (FY2023).
The pioneers of the electronic Certified Pre-Owned Vehicle market in Southeast Asia also achieved profitability in their last fiscal year.
“Fiscal 2022 was our best performance yet. Not only did we grow 2.5x, but we did it profitably. We were laser-focused on the pandemic around operational excellence and improving costs; we have chosen to use programmers to solve our problems and are starting to see the fruits of our labor,” said co-founder and CEO Aaron Tan.
The group’s continued focus on online retail and machine learning has generated record gross profits. The company is on track to improve its gross profit margins to around 10% by the end of this fiscal year, tripling its absolute gross profit.
Carro’s online retail of Certified Pre-Owned Vehicles and Financial Services has also driven the bulk of its improvements in profitability and margins. Excluding its wholesale business, the company expects gross profit margins of nearly 15%.
Genie Financial Services, Carro’s wholly-owned fintech business, also had a very strong 2022. The company’s NPL (non-performing loans) ratio remains at a low of 0.1% as it continued to generate approximately 30% ROE (return on equity) over the past fiscal year. The overall loan portfolio has increased nearly 2 times to reach a record S$400 million this year.
“Our revenue growth was not driven by just one market – in fact, our four markets all contributed to the strong fiscal year. Thailand alone processed around 35,000 units at the current rate per year and Indonesia today represents an annualized EBITDA of almost S$40 million. We expect revenue from our online and ancillary retail businesses to reach over S$500 million this financial year,” Chief Financial Officer Ernest Chew said.
Based in Singapore, Carro has a strong presence in Asia Pacific, supported by over 2,000 employees in Indonesia, Thailand, Malaysia and Vietnam. He has raised over S$700 million from the SoftBank Vision Fund and several sovereign wealth funds.
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