Carro, the largest and most profitable online used car platform in Southeast Asia, has announced its impressive financial results for the fiscal year ending in March 2023. The company achieved a record-breaking positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4 million, marking its best-ever full-year performance. Carro also achieved an annualized run-rate of $35 million in EBITDA, with a 4% EBITDA margin towards the end of the last financial year.
One of the key highlights of Carro’s performance was the significant increase in its gross profit margin (GPM) for the fiscal year 2023. The GPM rose to 9%, with the final quarter ending on a high note, reaching an impressive GPM of 11%. This more than doubled the GPM of the previous fiscal year, 2022. The growth in gross profit margin was primarily driven by the strong expansion of ancillary income, which accounted for nearly 60% of Carro’s gross profit in the final quarter.
Carro’s exceptional financial performance was further reinforced by its full-year revenue surpassing $800 million, supported by a Gross Merchandise Value (GMV) of $1.5 billion. The company successfully sold and financed over 120,000 vehicles across its key markets, including Indonesia, Thailand, Malaysia, and Singapore.
In addition to its core used car business, Carro’s fintech arm, Genie, also experienced substantial growth across the region. Notably, Genie maintained non-performing loans (NPL) at an impressively low rate of 0.2%, well below industry benchmarks. Furthermore, Carro’s overall loan book expanded to over $350 million, demonstrating the company’s strong presence and success in the lending sector.
Aaron Tan, the co-founder and CEO of Carro, expressed the company’s strategic focus on profitability and unit economics while optimizing productivity and cost structure. Tan emphasized that Carro’s goal is not simply to sell more cars, but to capture more value and recurring income streams. In pursuing a sustainable business model, Carro leveraged its ecosystem to drive recurring ancillaries throughout the entire ownership and usership lifecycle. The company’s fintech and mobility businesses made significant strides in FY2023, and it laid the groundwork for further growth in its insurtech sector through strategic partnerships with ZA Tech and MSIG, as well as aftersales initiatives.
Ernest Chew, the Chief Financial Officer of Carro, celebrated the record-breaking EBITDA achieved in FY2023, with an annualized EBITDA margin of approximately 4%. Chew confidently stated that the company is on track to achieve 10 times the EBITDA this year. Notably, Carro’s strong performance is not solely reliant on vehicle sales, as almost 60% of its gross profit comes from recurring ancillaries. This underscores the benefits of Carro’s sustainable ecosystem-driven business model. The company currently operates with minimal operational burn, and positive EBITDA is observed across all core markets. Furthermore, Carro has fortified its balance sheet and diversified its lending relationships, collaborating with 17 financial institutions that offer competitive financing costs.
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