Carro Reaches US$11 Mln EBITDA, Used Vehicle Market on the Rise?

Trusty Cars Pte Ltd (Carro), an online used car platform operating in Southeast Asia, recorded earnings before interest, tax, depreciation, and amortization (EBITDA) of US$11 million in the first quarter of FY2024.

The unicorn, which is backed by Softbank Vision Fund, also secured an additional US$122 million in funding through asset-based financing.

Carro's gross profit margin in the first quarter of FY2024 increased by 14 percent, higher than the same period in FY2023 by nine percent.

The Singapore-headquartered startup's run-rate EBITDA reached more than US$50 million, a more than tenfold jump from FY2023's achievement. "Our focus remains on basic principles, and our unwillingness to engage in subsidy wars has enabled us to generate four quarters of positive EBITDA," Aaron Tan, Co-founder and CEO of Carro, said in a written statement on Thursday.

The company relies on a digital ecosystem-based business model and recurring ancillary income that makes its business stronger.

Tan also said the additional investment from Jardine Cycle & Carriage worth US$60 million will help Carro drive greater revenue growth, especially from the after-sales side. Carro also recently received a capital injection from insurtech ZA Tech.