Edaran Otomobil Nasional Berhad (EON) recently entered into a strategic investment partnership with Genie Malaysia, a subsidiary of Carro. This collaboration emphasizes the pivotal role of fintech in their digital used car ecosystem and sees DRB-HICOM’s investment as a significant validation of Genie Malaysia’s unique business model. This development strengthens their ongoing partnership with DRB-HICOM, which began in 2021.
This collaborative endeavor leverages DRB-HICOM’s extensive decades-long experience in the automotive industry and Carro’s tech-enabled platform to revolutionize auto financing in Malaysia. According to Akkbar Danial, CEO of EON and Head of Automotive Distribution at DRB-HICOM, both parties stand to benefit from this investment. Following their investment in Carro, parent company of used car platform myTukar in 2021, they are excited to deepen this strategic partnership, believing that it will create unprecedented opportunities for customers and mutual success.
Akkbar Danial highlights the mutual benefits of combining the experience of both parties in their respective markets as they embrace game-changing technology. Their accumulated expertise will prove valuable as they navigate and innovate within this new technological landscape.
The investment aligns with DRB-HICOM’s efforts to enhance its automotive distribution ecosystem. This collaboration also opens up cross-selling possibilities for DRB-HICOM within myTukar’s extensive dealer network, consisting of over 2,600 dealers nationwide.
Genie Malaysia, which commenced operations in 2021, has rapidly built a loan portfolio nearing RM600 million, encompassing a diverse range of loans. Utilizing a data-centric approach, they have maintained a Non-Performing Loan (NPL) ratio of less than 2%, outperforming many of their peers and even some banks.
Simon Chan, CEO of Genie Malaysia, sheds light on the company’s inception, driven by the untapped market of underserved and unbanked car buyers lacking access to traditional bank financing. Genie Malaysia, powered by data and the unique strengths of Carro and myTukar, has democratised used car financing, making car ownership accessible to a broader audience.
Ernest Chew, Chief Financial Officer of Carro, underscores Genie Malaysia’s profitability since its first year of operation. They have successfully collaborated with banks to serve the underserved while maintaining impressively low NPLs. Currently, they are partnering with two leading banks and anticipate further expansion in the near future.
