Carro, a Singapore-based used car marketplace, has announced that it is to receive SGD75.0 million ($55.5 million U.S.) in debt financing for its fintech arm, Genie Financial Services, from HSBC.

The multi-currency loan will be the first made by HSBC’s recently launched $1.0 billion ASEAN (Association of Southeast Asian Nations) Growth Fund.

Carro CFO Ernest Chew said the debt would augment Carro’s existing SGD350 million liquidity and help it diversify its funding channels, particularly in Malaysia, where Genie Financial Services is based.

“HSBC has been a very supportive partner and one of very few banks who recognise the need to support regional start-ups like us to achieve sustainable profitable growth,” said Carro co-founder and CEO Aaron Tan.

“Our fintech business, leveraging proprietary data-driven lending, has been growing prudently with a loan book exceeding S$500 million and NPL [non-performing loan] below 0.5%. Securing this landmark financing from HSBC is a huge validation of our digital ecosystem-led business model. This enables us to serve the underserved consumer segment even better.”

Revenue at Carro jumped by 67% year on year to SGD1.1 billion during the 12 months to March 2024 (FY2023). However,  its after-tax loss also soared — from $6.7 million U.S. in FY2022 to $94 million U.S. in FY2023.

The company is active in seven markets: Hong Kong, Singapore, Malaysia, Indonesia, Thailand, Japan and Taiwan.

Print Friendly, PDF & Email

Related Articles