Participating investors from Indonesia, Singapore, Japan and China included Singtel Innov8, Golden Gate Ventures, Alpha JWC, Skystar Ventures and GMO Ventures, as well as early-stage VC firm Coffee Ventures.
Aaron Tan, Carro CEO, said the company plans to expand into Malaysia, Indonesia and Thailand by the end of 2016.
The company which was formed in November 2015 by five former Information Development Authority (IDA) Singapore National Infocomm Scholars, is based on various algorithms which allows users to buy and sell used cars.
Carro generates its revenue through commissions from partnerships with finical institutions like banks and insurance companies. A $183 fee is charged if a car gets sold via the Carro platform.
Today Carro launched Carro Workshop, a mobile app that recommends workshops to car owners based on pricing, location and service preferences.
Prior to that the company launched graph,sg which allows users to determine the fair price for their cars through machine learning algorithms. Carro Accessories, a retail website offering high quality gadgets sourced globally was also launched.
Carro’s success comes from the elimination of a middleman where sellers and buyers can experience an efficient money-saving transaction. However according to Tan, the biggest challenge Carro faces is educating the public that breaking away from a dealership is possible.
In a statement to e27.co, Tan said “Most people are stuck in the mindset of having to sell to a dealer because they deem it as the only way, or a hassle-free way to do so; however much they hate the experience of visiting a dealership. This change in mindset has been fairly tough to change, we are chipping that away slowly each day,”
Carro claims to have grown at a rate of 30 percent month-on-month since the launch and plans to hit gross merchandise run rate of SG$100 Million by end of this year.
This is the second round raised by the startup. SG$1 million in seed round was first raised in November on 2015.