Carro, Singapore based online marketplace for used cars, has raised $5.3 million in a Series A round led by Lippo Group-backed venture firm Venturra Capital. Participating investors from Indonesia, Singapore, Japan and China included Singtel Innov8, Golden Gate Ventures, Alpha JWC, Skystar Ventures and GMO Ventures. With this new funding, the company plans to expand into Malaysia, Indonesia and Thailand by the end of 2016.
The company which was formed in November 2015 by five former Information Development Authority (IDA) Singapore National Infocomm Scholars, is a peer-to-peer car marketplace that helps direct owners buy and sell cars faster and at a great price. It is based on various algorithms which allows users to buy and sell used cars.
With Carro, buying and selling a used car can be easy, it help you with the transfer, car loan and insurance process every step of the way. Carro provides the entire white glove service of end to end car inspection. The company offers a wide range of cars that are direct owner and have been certified by its trained mechanic.
The firm generates its revenue through commissions from partnerships with finical institutions like banks and insurance companies. A $183 fee is charged if a car gets sold via the Carro platform.
The company claims to have grown at a rate of 30 percent month-on-month since the launch and plans to hit gross merchandise run rate of SG$100 million by end of this year. In November 2015, the company had also secured SG$1 million in seed round.
Apart from funding, the firm also launched Carro Workshop, a mobile app that recommends workshops to car owners based on pricing, location and service preferences.