Singapore-based online used car platform Carro has reported EBITDA of $4.0 million for the 12 months to March 2023 (FY2023), according to a press release from the company.
It noted that EBITDA reached an annualized run rate of $35 million, with a 4% EBITDA margin, “towards the end” of this period.
The company earned revenue of more than $800 million on gross merchandise value (GMV) of $1.5 billion in FY2023.
During FY 2023, the company sold and financed more than 120,000 vehicles across Indonesia, Thailand, Malaysia and Singapore.
The company’s gross profit margin for the full year increased to 9% (reaching 11% in Q4 FY2023 — more than double the figure for FY2022 as a whole), with ancillary income growth accounting for 60% of Carro’s gross profit in Q4 FY2023.
Genie, the company’s fintech business, saw its loan book exceed $350 million by the end of FY2023.
Carro co-founder and CEO Aaron Tan said: “We are laser-focused on improving profitability and unit economics while optimising productivity and cost structure.”
“It’s not about selling more cars; it’s about capturing more value and recurring income streams. As other businesses continue to focus on GMV growth at all cost, we strategically doubled down on building a sustainable business model and leveraged our ecosystem to drive more recurring ancillaries across the entire ownership and usership lifecycle.”
“Our fintech and mobility business made significant strides in FY2023. We have also laid foundations for stronger growth in our insurtech business via strategic partnerships.”
CFO Ernest Chew added: “Not only did we hit record EBITDA in FY2023, our annualised EBITDA is tracking to plan with an EBITDA margin of around 4%.”
“Even if we sold zero cars, we would be super-EBITDA positive today. Nearly 60% of our gross profit is from recurring ancillaries. This is the real benefit of a true, sustainable ecosystem driven business model.”
“We have also built a fortress balance sheet and diversified our lending relationships to 17 financial institutions, who have offered us very competitive cost of financing.”
Founded in 2015, Carro ended FY2023 with cash or cash equivalents of $560 million. According to Crunchbase, the company has raised a total of $705 million in debt and equity over 11 rounds to date.