Carro concluded FY2024 on a high note, reporting an EBITDA of S$43 million (US$32 million) with a 4% EBITDA margin, according to its audited financial results. The company also achieved a 12% gross profit margin (GPM), driven by a combination of enhanced marketplace margins, ancillary income growth through its ecosystem, and increased operational productivity.
Carro’s fintech arm, Genie Financial Services, posted strong and measured growth across the region, maintaining non-performing loans (NPLs) below 0.5%—well below industry averages. Its overall loan portfolio expanded to S$496 million (US$370 million). Over the past year, Carro extended its footprint to seven markets, expanding beyond Southeast Asia into Hong Kong and Japan.
Co-founder and Group CEO Aaron Tan highlighted the company’s strategy for sustainable and profitable growth. “These results reflect the unique strengths of our ecosystem-driven business model. Our focus remains on expanding marketplace margins, cross-selling ancillary services for recurring income, and leveraging data and technology, including AI and machine learning, to improve inventory turnover, customer lifetime value, and overall productivity,” Tan said.
“We’re excited about scaling profitably in our core markets while growing in new territories like Hong Kong and Japan. Despite being a small player in a massive yet fragmented market, we see significant growth opportunities ahead,” he added.
Chief Financial Officer Ernest Chew noted the company’s impressive financial progress, emphasizing an overachievement of its 10x EBITDA growth target. “Despite a challenging macroeconomic environment, we’ve significantly improved margins and reduced reported operating losses by 92%, putting us close to positive operating profits. With cash from operating activities turning positive, we’ve built a liquidity reserve of over S$400 million in cash and undrawn credit lines,” Chew said.
Carro also strengthened its offerings through partnerships and strategic investments. Collaborations included investments from Jardines, DRB-Hicom, and Woori Venture Partners. Initiatives like “Carro Care Powered by Jardine & Cycle” enhanced refurbishment and after-sales capabilities, while a partnership with ZA Tech introduced personalized self-serve insurance products, driving a 60% increase in Gross Written Premiums.
Woori Venture Partners’ strategic investment is poised to bolster Carro’s growth in Southeast Asia, particularly in Indonesia, a key market where the used car industry is expected to grow from US$56.3 billion in 2024 to US$74.4 billion by 2029. Alan Ang, Director of Woori Venture Partners, praised Carro’s scalability and profitability, describing it as the market leader primed for disruption.
Chew echoed this sentiment, noting the importance of strategic partnerships. “Working with Woori, a storied financial institution, allows us to address gaps in the market, better serve underserved populations, and drive financial inclusion,” he stated.
