Malaysia-based used car platform Carsome has raised $6 million in a funding round led by venture capital firm Gobi Partners. The Southeast Asia-focused startup will use the funds to expand regionally.
“The platform plans to use the new funds to further expand regionally, while also launching more inspection outlets across the four countries, with a primary focus on Indonesia, Malaysia and Thailand,” the statement said.
All the three primary focus countries are, in fact, the largest car markets in Southeast Asia, with a total of 3.5 million used car transactions conducted annually. Carsome currently has five offices spread out among the four countries and hopes to double this amount by the end of 2017.
Carsome caters to Southeast Asia which is currently highly fragmented and inefficient, with an estimated $30 billion per annum in used car sales.
Founded by Eric Cheng and Jiun Ee Teoh in 2015, Carsome is an online used car auction platform that has increased its monthly revenue by 12.5x since its previous fundraising round in March last year and its annualized gross revenue stands at approximately $30 million.
Last year in March, it closed a $2 million Series A funding round led by Malaysian investor Idea River Run along with other investors that included Japan’s IMJ Investment Partners and 500 Startups. Prior to that in 2015, it got $350,000 in seed funding from 500 Startups.
Carsome’s choice of investors for this round stems from a decision to work with a global investor syndicate that carries extensive knowledge of the industry. Shanghai-based Gobi Partners has earlier invested in Chezhibao in China, which recently just raised a $100 million round while Lumia Capital invested in Instacarro in Brazil.
“Moving forward, we will be helping the company to look for more strategic partners and investors, to build on the strong fundamentals Carsome has,” said Victor Chua, Vice President of Investment for ASEAN at Gobi Partners.