Southeast Asian online automotive marketplace Carro had just successfully closed a deal to buy out Jualo by raising an additional $30 million for its series B funding round. This was an announced strategic move as the company plans to further extend its presence in Southeast Asia.
Carro has been known for quite a long while already as one of the leading online car financing startups in Asia. Founded in 2015 in Singapore, its online services eventually stretched out into Thailand and Indonesia, rivaling other online car marketplaces such as Carsome and iCar Asia.
The business model for this company is simple. It is essentially the Amazon for purchasing or selling cars in Southeast Asia. On its first year alone, it already reported profits of around $100 million, exponentially growing further by $250 million by the end of 2017.
It is also quite notable that a good majority of these profits did not actually come from its home country, at least 70% of its transactions have been reportedly conducted and completed in other countries.
The acquisition of Jualo was, as mentioned earlier, part of its strategy to open more marketplaces in Southeast Asia. Unlike Carro however, Jualo itself does not have any particular specific merchandise, with buyable and sellable items including vehicles, clothing, electronics, and other owned products.
By all technicality, it is nearer to eBay in terms of product-type availability and market options. As such, it is instead built on better guarantees for peer-to-peer service, as it employs direct transaction safety features such as Escrow.
The $30 million funding is in fact, only part of the company’s collected funds for its series B round, which is $90 million in total. The initial $60 million was raised last May 2018, with the backing of EDBI, Dietrich Foundation, Softbank Ventures Asia, and NCORE Ventures.
Jualo, although now owned by Carro, will still remain at its same spot. Business operations will still fall under its own brand, and no changes to its online system are slated to be made soon.