CarDekho SEA, a Singapore-based auto financing service platform, has successfully raised $60 million in equity from Navis Capital Partners and Dragon Fund. This marks its first external funding round, following a prior investment of $40 million from its parent company, CarDekho Group. The company, operating as the Southeast Asia region of India’s CarDekho Group, will use this capital to further expand its operations in the used car and bike financing sectors across Indonesia and the Philippines.
Company Overview
CarDekho SEA is part of the rapidly growing CarDekho Group, which operates a network of auto dealerships in Southeast Asia. Founded in 2020, the company already has a significant presence in several key markets, including Thailand, Singapore, Malaysia, Vietnam, Indonesia, and the Philippines through its subsidiaries Carmodi Philippines, Zigwheels Philippines, and OTO Indonesia.
Expansion Strategy
Umang Kumar, co-founder and president of CarDekho, emphasized that the company’s expansion into Southeast Asia is driven by strategic growth. “We plan to focus on the used car and bike financing sectors in Indonesia and the used auto financing sector in the Philippines,” said Kumar in an interview with TechCrunch. “We are actively looking at opportunities for organic growth as well as potential acquisitions.” He added that while organic expansion remains a priority, the company is also open to inorganic strategies such as mergers and acquisitions (M&A).
Acquisition Spree
In 2021, CarDekho SEA acquired Carmodi, which operates in Indonesia and the Philippines. This deal underscores the company’s commitment to expanding its reach within the used auto financing market. Carmodi’s presence in key markets will complement CarDekho SEA’s existing network.
Competitive Edge
CarDekho SEA differentiates itself through several unique features:
- Efficient online platforms: The company offers a seamless digital experience for both buyers and sellers.
- Affordable credit solutions: Customized financing options tailored to individual needs.
- Wide range of vehicles: Access to a diverse inventory, including bikes and two-wheelers.
Market Growth
The used auto market in Southeast Asia is expected to grow steadily. According to industry reports, the region is projected to reach $10 billion by 2025, driven by factors such as urbanization, increasing disposable incomes, and a growing awareness of environmental issues.
Customer Focus
CarDekho SEA prioritizes customer-centric services. The company aims to provide affordable financing options for small dealerships in Southeast Asia that may struggle to obtain credit due to limited financial resources. Through its aggregated demand approach, CarDekho SEA enables these small businesses to access credit solutions they otherwise might not have been able to obtain.
Future Growth
With the capital injection, CarDekho SEA is well-positioned to capitalize on this growing market. The company plans to expand into new markets and deepen its presence in existing ones. Additionally, the infusion of capital will enable the company to enhance its technology stack, including AI-driven solutions for fraud detection and personalized customer service.
Key Partnerships
CarDekho SEA has established strong partnerships with multiple financial institutions across Southeast Asia, ensuring access to credit solutions for its network of dealerships. This strategic alliance is critical to scaling operations effectively.
In summary, CarDekho SEA’s successful funding round marks a significant milestone in its journey toward becoming a leading provider of used auto and bike financing in Southeast Asia.
