Malaysia-based auto marketplace Carsome says it has a “robust” liquidity position at over $150 million U.S., following revenue growth of 250% in 2022.

Carsome said an accelerated profitability plan had prepared the group for “more disruptions and challenges in the funding markets.” This approach, it said, had delivered operational profitability and enabled Carsome to beat internal targets for gross margin growth and productivity improvements as of Q1 2023.

In 2022, the group said, its revenue grew by 250%, with the newly established retail line Carsome Certified contributing 35% of total revenue.

“In Q1 2023, the group achieved its operational profitability milestone for the first time, primarily driven by a significant growth of trade margin, which doubled compared to the same period last year. Notably, more than 80% of the trade margin came from high-quality transaction margins,” it said in a statement.

ICar Asia Group — which the company acquired last year — saw 30% year-on-year revenue growth in Q1 2023.

“In addition to achieving profitability on its own, the ecosystem strategy has also contributed significantly to the more than 60% reduction in customer acquisition cost of the group over the last 12 months,” said the company.

“With the launch of the flagship Carsome Service Centers, the group has meaningfully integrated its products and services, from discovery to servicing, all within a single consumer app. This marks a major step in pursuing the group’s mission: to provide its customers with peace of mind through the entire lifecycle of their ownership experience.”

Carsome operates in markets across Malaysia, Indonesia, Thailand and Singapore.

“As we navigate a rapidly changing industry, Carsome has embraced adaptability and remained resilient. Through our commitment to operational excellence and our customer-centric approach, we are grateful to have exceeded our expectations, achieving notable growth whilst pursuing profitability. We are grateful for the government’s support towards a homegrown brand such as ours as we scale regionally,” said group CEO Eric Cheng.

“The group’s internal measures for operational excellence, driven by strong capabilities in data and technology, continue to yield gross margin improvements, team productivity, marketing efficiencies and inventory management across its markets. Coupled with this, Carsome will take full advantage of its ecosystem strategy to redefine customer satisfaction in automotive ownership to serve its growing customer base and communities across Southeast Asia,” he added.

In its statement, the group also responded to recent reports that it had requested funding from Malaysia’s Ministry of Finance.

The company said it “has not solicited nor petitioned the Ministry of Finance for funding. It submitted a letter on 27 March 2023 in response to an engagement session with the Ministry of Finance to encourage and welcome the participation of Malaysian institutional investors in the company’s growth journey.”

It added, “The group frequently engages in discussions with various stakeholders on ecosystem building and in driving institutional engagements. As part of these routine engagements, Carsome has always championed growth for the local startup ecosystem which can positively contribute towards the nation’s economy and enhance the nation’s digital talent pool.”

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