|In today’s world of technopreneurs, business opportunities happen to the few individuals who dare to make the accurate decisions to step up to the plate. One such company is an up and coming online auto trade portal, Carsome.|
Having been an active member in domestic motoring circles not too long ago, approximately a year, Carsome has quickly firmed up its foundation to make the organization stand on a solid platform, thanks to its latest venture funding gain of USD 2 million.
Carsome Sdn Bhd., in a latest statement, announced that they have acquired a total fund of USD2 million (RM8.42 million) following the Series A funding round. Carsome was among the leading companies for the funding from Japan’s IMJ Investment Partners and US Silicon Valley-based 500startups. The company that led the funding this time around was Idea River Run, a Malaysian investment organization.
With the USD2 million funds, Carsome plans to channel a major portion of the Series A funding towards expansion into two new countries, Indonesia and Thailand. The remainder of the funding is set to be poured into marketing activities for the purpose of strengthening brand presence and supporting talents acquisition for operations. At present, Carsome has a Gross Merchandise Value (GMV) that exceeds USD5 million. The company is targeting to grow this value by 10-fold and aims to reach profitability by the end of 2016.
Eric Cheng, CEO & Co-founder of Carsome, said, “Last August, we secured USD350,000 in seed funding to realise our regional expansion ambitions. In just 6 months, we have developed Carsome into a formidable car-trading platform and have grown our services to include many aspects of the car trading process chain. As a result, we now have a portal that caters to the varying needs of car buyers and sellers in the region.”
“South East Asia is a key market for us and we are committed to growing Carsome’s presence within this region. The outcome from this round of funding is very encouraging and we are confident that as the implementation of plans progress, we will realise positive returns for our investors in the coming months,” he added.
In its present course, Carsome has 500 active dealers on its portal with a presence in Malaysia, Australia and Singapore. The company aims to increase this to at least 1,000 dealers across all markets by the end of the year. In Malaysia, the average ‘buy’ value for vehicles is RM60,000 while the average ‘sale’ value is RM30,000.
Established in February 2015, Carsome initially began by offering buyers the ability to compare prices and offers of new vehicles as well as complete a purchase at their own convenience. Since then, Carsome has also launched a car selling service, where sellers can access information on car valuations with full transparency and sell their cars in less than 24 hours. This also assures car dealers a constant first-class supply of thoroughly inspected cars.
Carsome is the brainchild of Cheng and his partner Teoh Jiun Ee, the Chief Operating Officer. Carsome’s partnership with car dealers has expanded to beyond 500 dealers thus far, and most of the Carsome-appointed dealers carry renowned auto marques in the country; namely Proton, Perodua, Ford, Honda, Hyundai, Mercedes, Nissan, Toyota and VW.
Recently, Carsome did their very first roadtour, jointly organized with SAG Group’s Target Orion Star, based in Balakong. The roadtour, which was held at the Sunway Pyramid last weekend, gave potential buyers an opportunity to purchase a brand new Mitsubishi, with rebates up to RM6,888. The potential buyer also had the opportunity to trade in his or her pre-owned car and get paid on-the-spot. The trade-in scheme was especially made possible by Carsome for this unique post-CNY roadtour.