Malaysia-based automotive marketplace Carsome has acquired a stake in PT Universal Collection (PT UC), a used vehicle sales company located in Jakarta.
In 2020, PT UC transacted almost 30,000 vehicles across Indonesia thanks to its branches in South Tangerang, Bandung, Yogyakarta and Malang.
Head of Carsome Indonesia Delly Nugraha, newly appointed president director of PT UC through the transaction, said this is the company’s first investment in Southeast Asia this year. The details of the deal haven’t been disclosed but, according to Nugraha, more merger and acquisition transactions are being planned in the near future.
“The selection of interests is expected to be able to double Carsome vehicle transactions in Indonesia,” he said. The new president director added that this ownership is also a strategic move for the company to open more opportunities and networks, further expanding operations in Indonesia, Carsome’s main market.
Based on a Carsome customer survey published in early 2021, Indonesians’ interest in buying or selling used vehicles remains high, with 64% of customers expressing interest in buying used cars on April 21. Carsome has facilitated more than 9,000 transactions of vehicles per month and aims to achieve more than 100,000 transactions a year.
Carsome has expressed interest in going public, specifically via a merger with a special purpose acquisition company or a conventional public offer. News reports suggested that the classified could seek around $2 billion in valuation and is looking at conducting a pre-IPO round with hopes to raise $150 million.
“Through PT UC’s access to used vehicle supplies in the market, Carsome’s distributor partners will now enjoy more inventory diversification and wider options. The deal puts the company on track to achieve annual revenue of $1 billion as a target, considering the current target is almost $800 million,” said Nugraha.