The business marketplace of Carro, which has contributed to 85% of revenue, is claimed to boost the gross profit margin over the last 12 months.
Heaptalk, Jakarta — Carro, Southeast Asia’s automotive startup, noted a positive EBITDA of over US$4 million in June 2023. According to the company, Carro’s EBITDA is at an annual run rate of over US$50 million, representing tenfolds of the achievement in FY2023.
Despite facing a relatively diminished quarter seasonally due to Eid and Songkran occasions in Southeast Asia, Carro’s gross profit margin in Q1 FY2023 has increased to 14%, compared to 9% in the same period last year. Furthermore, the ancillary components represent nearly 60% of Carro’s gross profit. This growth simplifies the company to trade more products to meet profitability targets.
Moreover, the business marketplace of Carro, which has contributed to 85% of revenue, is claimed to boost the gross profit margin over the last 12 months. Besides, Carro’s gross profit for mobility grew by almost 200%, after-sales service increased by more than 150%, and financing and insurance grew by around 50% annually.
“Our robust execution of our digital-based business model has strengthened our business fundamentally, with significant and sustainable additional revenue streams. Incremental revenue attachment rates have also elevated because we focus more on the platform as the primary driving factor of our business growth.”
Founded in 2015 as an automotive retailer platform, Carro aims to transform the traditional way of selling and purchasing used cars through pricing and artificial intelligence (AI) capabilities. In eight years of its presence, this automotive startup has expanded its reach in several Southeast Asian markets, including Malaysia, Singapore, and Thailand. Along with its outstanding performance, this automotive marketplace startup plans to broaden its business reach by penetrating the Japanese and Taiwanese markets.
“Carro has demonstrated its fantastic performance in the early quarter, with profitability metrics improving across the field. With strong cash flow and minimal operational losses, we have strategically decided to expand into other markets this year as we expect explosive profit growth soon.” The Chief Financial Officer of Carro, Ernest Chew, affirmed.
Also, investment from Jardine C&C will help the company generate more significant revenues, especially after-sales. According to the company, the partnership with ZA Tech and MSIG has also yielded effective results, with gross premiums growing by nearly 100% yearly.
