Carro, Southeast Asia’s leading online used-car marketplace, has secured US$60 million in a funding round led by Japan’s sovereign Cool Japan Fund. The investment is earmarked for accelerating the adoption of Japanese plug-in hybrid electric vehicles (PHEVs) and used Japanese cars across the Asia-Pacific.
What the Deal Entails
- Lead Investor: Cool Japan Fund, a public-private fund backed by the Japanese government.
- Use of Funds: Boost Japanese PHEVs’ market share in Asia-Pacific; deepen partnerships with Japanese automakers; scale Carro’s ecosystem of services—including car sales, insurance, financing and after-sales.
- Geographic Reach: Carro currently operates in Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong. Expansion toward Australia is being explored.
Bigger Picture & Aspirations
- IPO Plans: Carro is preparing for a U.S. IPO potentially as early as 2026, targeting a valuation north of US$3 billion. A dual listing (possibly U.S. + Hong Kong or Singapore) is under consideration.
- Acquisitions & Expansion: The company intends to make two to three acquisitions in the near term to strengthen its footprint and service portfolio. Entry into Australia is also on the radar.
Significance
- Strategic Alignment: The funding signals Japan’s efforts (via Cool Japan Fund) to increase exports and demand for its automotive technology, especially in EV and PHEV formats. Carro becomes a natural partner in this push.
- EV Transition in Emerging Markets: Southeast Asia has strong demand tailwinds—rising middle-income consumers, government subsidies for EVs and PHEVs, and increasing environmental regulation. Carro aims to capture that shift.
Carro’s US$60 million raise is not just capital-fuel for expansion; it’s a bet on the future of Japanese EVs and green mobility in Asia. This move could reshape how the region buys, sells and uses vehicles—especially as more consumers and regulators demand cleaner transportation.
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