The global “circular economy” — reuse, repair, and resale of goods — is a $4.5 trillion business opportunity, estimates the World Resources Institute. The sheer potential of this sector is what has catapulted the homegrown Singapore startup Carousell to within striking distance of the unicorn club.
In our latest report, Company Report: Carousell, we delve into the company and also the market that it is in. The global resale market is expected to clock 39% CAGR between 2019 and 2024.
Resale will overtake traditional thrift and donation by 2024
Carousell was founded by three university students at the National University of Singapore in 2012 as a listings marketplace for pre-loved items. It clocked a mere $7,476 in annual revenues in 2016.
After a series of fundraisings, starting 2013, Carousell went on an acquisition spree across Southeast Asia, bringing into its fold startups such as Caarly, and OLX’s Phillippines business. The result has been a leap in annual revenue to $15.7 million in 2019.
The report also discusses how the company’s valuation ballooned to $900m. It may achieve unicorn status soon, joining other Singapore firms such as SEA Group, Grab, Lazada, Razer, and Trax in the billion-dollar club.
Meanwhile, Carousell has evolved beyond pre-loved items to a listings platform for property, automobiles, and preowned luxury goods across eight countries.
It prides itself on being “sticky”, whereby users rely on it regularly for their different needs. Its strategic acquisitions reflect how, as a senior Carousell executive said in an interview, users will “grow with us from their student days and keep using us even as adults with changing needs.”
And while there are overall business risks — the global property and automobile markets may soften due to geopolitical turmoil, for instance, or fraud and scams on the platform may rise — the underlying trend of green consumerism is here to stay. And with that, the boom in pre-loved items and greater C2C transactions via listing portals.
The report is available exclusively to DealStreetAsia – Research & Analytics subscribers. Highlights include
- Carousell’s completed fundraising rounds
- The company’s shareholders
- The company’s acquisitions
- Competition and other risks faced by Carouse
- The growth prospects of the resale, property, and automotive listings markets