AU’s Carbar raises $16.8m from IAG, private investors to grow car subscriptions

Photo: Pixabay

Australian car subscription platform Carbar raised $16.8 million from IAG, the country’s largest general insurer, and private investors.

Founded in 2016, Carbar is Australia’s first car subscription platform, catering to customers seeking alternative modes of vehicle ownership.

The deal saw IAG taking a majority stake in the company.

According to a statement, Carbar plans to use the capital raised to expand its vehicle subscription model while supporting the growth of its online car trading platform. Going forward, the company plans to expand its services to new cities across Australia. In June, it forayed into Sydney.

The deal enables IAG to focus on emerging mobility trends that are guided by rising demand for flexible car subscription services.

The deal will see both IAG and Carbar collaborate on marketing, technical support, and distribution opportunities to cater to customers’ mobility needs.

IAG’s executive general manager of innovation James Orchard said: ‘Carbar has pioneered the car subscription model in Australia. We look forward to combining its world-class digital capabilities with IAG’s assets and scale to provide new mobility experiences for customers today and in the future.”

Des Hang, CEO and co-founder of Carbar said that the automotive industry is reaching an inflection point with massive changes towards car ownership happening across Australia and globally.

“New car sales for combustion engine cars are down globally, and Australia isn’t immune from this trend. Earlier this year, we saw the merger of two of Australia’s largest car dealership operators as a result. Carbar is operating and growing around these trends, so we believe we will be well-positioned to capitalise on these new markets that are emerging as a result of it,” said Hang.

Carbar last raised a $5.8 million venture round in August last year, according to Crunchbase.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.