Carro Seeking to Raise $100 Million Pre-IPO

A senior executive at the unicorn headquartered in Singapore, Carro, has revealed that the Southeast Asian online automotive marketplace is currently discussing with potential investors to secure over US$100 million. This funding would precede a possible US listing within the next 18 months. Ernest Chew, the Chief Financial Officer, told Reuters that we are currently considering a small fundraiser as we are receiving interest from specific investors.

Former HSBC banker Chew, who worked in Hong Kong and London, stated that the investors were well-established blue-chip companies from both global and regional markets. He refused to provide any additional information.

Chew added that the fundraising could potentially increase the valuation of Carro, which is currently over US$1 billion, even further. Carro is currently finalizing "triple-digit million dollars" financing from banks at a rate of around 5% per year, which Chew described as "almost completely free of risk." He mentioned that the funds will be utilized to support the expansion.

According to their website, Carro's platform enables consumers and dealers to purchase and sell vehicles while also offering insurance and financing services.

Carro, which was established in 2015, has since grown its presence to include Malaysia, Indonesia, Thailand, Japan, and Taiwan. The company has secured more than US$1 billion in funding, which includes both debt and equity investments from notable investors such as SoftBank Corp of Japan and GIC, Singapore's sovereign wealth fund.

Carro is considering an IPO to join the trend of Southeast Asian companies seeking to list in the United States. This trend has been fueled by the pause in US IPOs by Chinese companies due to political tensions with Washington, creating an opportunity for other companies in the region.