- Carro reports 67% revenue growth to $818M in FY2023.
- Ecosystem services drove highest growth, improving margins.
- Adjusted EBITDA turned positive at $3M, expected $33M-$37M in FY2024.
Singapore-based used-car marketplace Carro recorded a 67% year-on-year revenue growth, reaching S$1.1 billion (US$818 million) in the financial year ended March 31, 2023.
Although its core marketplace arm contributed 90% of its revenue, the highest growth came from recurring and highly profitable ecosystem-led ancillaries, such as financing, mobility, insurance, and aftersales.
This led to an improvement in gross profit margins, jumping from 5.3% in FY 2022 to 7.5% in FY 2023, according to Carro CFO Ernest Chew.
Strategic plans succeeded
In FY 2023, Carro made several strategic moves to expand its offerings, including a joint investment with Funding Societies into Indonesia’s Bank Index to bolster its fintech capabilities and the acquisition of a 50% stake in Indonesian car rental firm Mitra Pinasthika Mustika Rent for a reported amount of US$54 million.
The company also rolled out its services in Japan through a collaboration with SoftBank. These investments and expansions are reflected in the company’s adjusted operating profit for the year, which improved 6% to negative US$28.9 million.
Positive outlook for FY 2024
Carro’s adjusted EBITDA for FY 2023 turned positive at almost US$3 million, a number it improved going into FY 2024. The company expects to achieve EBITDA of US$33 million to US$37 million and positive adjusted operating profit for FY 2024.
In August last year, Carro hit US$11 million in EBITDA for the first quarter of FY 2024, its highest-ever quarterly profit. CEO Aaron Tan emphasized that the company’s focus is on capturing more value and recurring income streams, rather than simply selling more cars.
Recently, Carro has been expanding into Hong Kong and rebranding its subsidiary in Malaysia. Tan also mentioned that Carro is “IPO-ready” and in a position to list “as soon as it becomes realistically possible.”
To read the original article: https://www.techinasia.com/carro-posts-67-revenue-jump-fy2023-positive-adjusted-ebitda?ref=featured-subex-0
