- Carro plans to raise $100 million pre-IPO.
- The funds will be used for market expansion in Hong Kong and Japan.
- Solidifying its Asia Pacific presence is crucial for Carro’s successful IPO.
Cars and carats
Singapore’s Carro plans to raise around $100 million, potentially boosting its valuation beyond $1.5 billion.
CEO Aaron Tan revealed these pre-IPO ambitions during a Bloomberg interview, stating the company stands “IPO-ready.” However, the listing decision hinges on broader market conditions.
Over the next six months, Carro intends to utilize the funds for market expansion, primarily through M&A deals in Hong Kong and Japan. Aaron Tan cited these regions as key targets when discussing the raise with Tech in Asia.
Carro’s roadmap to success
Yinglan Tan, an early Carro investor from Insignia Ventures Partners, emphasized the importance of Carro solidifying its presence across Asia Pacific to pave the way for a successful IPO.
Hong Kong’s recovering automotive market and Japan’s 27% year-over-year growth in the first half of 2023 present attractive opportunities.
Carro’s rival, Carsome, has also been strategically positioning itself for an IPO, recently restructuring its leadership team.
Over nine years, both companies have invested heavily in inventory acquisition and delivery networks, enabling Carro to achieve a projected EBITDA of $33 million in FYE 2024, a substantial increase from $4 million the previous year.
To read the original article: https://www.techinasia.com/carro-eyes-100m-preipo-funding-15b-valuation
