Singapore-Based Auto Financing Service Platform Valued at Over $300 Million
CarDekho SEA, a Singapore-based auto financing service platform, has secured $60 million in equity funding from Navis Capital Partners and Dragon Fund. This significant investment values the company at over $300 million and marks its first round of external funding.
Previous Investment from Parent Company
Prior to this new funding, CarDekho SEA had received a previous investment of $40 million from its parent company, CarDekho Group. The current investment will be used to support further expansion into Southeast Asia, particularly in the used car and bike financing industry in Indonesia and the used auto financing sector in the Philippines.
Expansion Plans
Umang Kumar, co-founder and president of CarDekho, spoke with TechCrunch about the company’s expansion plans. "We will actively look at acquiring activities… The idea is not completely organically built. So we will look at some inorganic acquisition as we build out our business across Southeast."
The company has already established a significant presence in Indonesia (OTO Indonesia) and the Philippines (Carmudi Philippines and Zigwheels Philippines). It also operates in Thailand, Singapore, Malaysia, and Vietnam.
Acquisition Strategy
Kumar explained that the company initially had a joint venture partner in Indonesia but later bought out the local partner entirely. In 2021, CarDekho SEA acquired Carmudi, which operates in the Philippines, Indonesia, and Thailand, to expand into Southeast Asia.
Competitive Advantage
Unlike its peers, CarDekho SEA acts as a comprehensive aggregator for auto financing services. Its main competitor used to be Moladin, but it has now pivoted to become a full-fledged lender.
CarDekho SEA highlights its edges, including:
- Technology-driven loan procedures: The company uses AI and machine learning solutions to reduce fraud and credit risks.
- Asset-light marketplace approach with no credit risk: CarDekho SEA does not hold any assets or bear any credit risk.
- Extensive network of used car dealers and agents: The platform has established partnerships with over 50 financiers and 20,000 dealers and retail agents.
- Solid collaborations with financial institutions: CarDekho SEA works closely with financial institutions to provide access to a variety of financial products.
Growth and Revenue
Since its launch, the company has experienced significant growth. It has:
- Disbursed over $1 billion in loans: This represents a 50x increase in gross merchandise value over the past three years.
- Established partnerships with over 50 financiers and 20,000 dealers and retail agents.
- Generated upwards of $50 million in revenue annually through per-loan commissions with financiers.
Primary Customers
The company’s primary customers are small-scale used car dealers. Many of these dealers have less than ten cars in stock or no physical showroom at all.
"Due to their sub-scale presence, financiers often find it challenging to serve them directly," the CEO explained. "Our platform aggregates demand from these individual dealers, connecting them to a wide network of financiers and offering access to a variety of financial products for themselves and their customers—products that were previously inaccessible to them."
Competitive Landscape
The auto financing industry in Southeast Asia is highly competitive. CarDekho SEA’s comprehensive aggregator model sets it apart from its peers.
Conclusion
CarDekho SEA’s latest investment highlights the company’s growth potential in the Southeast Asian market. With a strong focus on technology and collaboration, the platform is well-positioned to capture a significant share of the auto financing industry.
References
- [1] TechCrunch. (2024). CarDekho SEA raises $60 million in equity funding from Navis Capital Partners and Dragon Fund.
- [2] CarDekho SEA. (2024). About Us.
- [3] CarDekho SEA. (2024). Our Technology.
This article provides an overview of CarDekho SEA’s latest investment, its expansion plans, and its competitive advantage in the Southeast Asian market.
