People widely regard Carsome as the online marketplace for used cars, and the Malaysian company is proud to be the country’s first tech unicorn. This article tells the story of Carsome, from the very beginning to becoming a prominent player in the used car business in Southeast Asia.
Eric Cheng, the group’s CEO and co-founder, is the opening character of the story. In 2006, he entered the magazine-publishing business with the goal of founding his own company and raising a startup. Regrettably, despite the setbacks, this experience ignited his entrepreneurial ideology. In 2015, while drinking coffee with his friend, he came up with the idea of Carsome. Their goal is to create the most trusted vehicle ownership ecosystem, powered by technology and data.
Traditional dealerships, known for their lack of dependability and transparency, dominated the used car market back then. Carsome has developed an online platform that provides a smoother, more trustworthy experience for both car buyers and sellers. Investors responded favorably to their efforts, especially Gobi Partners, who played a crucial role in Carsome’s growth trajectory. Carsome was able to collect over $575 million through multiple funding rounds, propelling them to take the lead in the used car e-commerce market in Southeast Asia.
Carsome’s success is due to its unique approach. They built a strong network of more than 13,000 trusted dealers throughout Malaysia, Singapore, Thailand, Indonesia, and the Philippines. Through this network, they are able to provide a huge selection of inspected and certified used cars, giving buyers confidence and quality. The company has a meticulous inspection process. Each car is carefully inspected by trained professionals, who are then able to provide detailed reports that highlight its condition and value. Being transparent builds trust with potential buyers and eliminates the fear of hidden problems that are often associated with used car purchases.
Carsome simplifies the entire process, in addition to bringing buyers and sellers together. Users can browse listings, compare prices, and even secure financing options using their user-friendly platform. Carsome provides a comprehensive experience by offering after-sales services like warranty plans and vehicle registration assistance. Despite its success, Carsome still faces some challenges. The market for used cars is becoming increasingly competitive in Southeast Asia. Carro, a Singapore-based company striving for a share of the expanding market, In November 2023, Carsome underwent a significant reorganization and reported the elimination of hundreds of jobs across the region to focus on reaching profitability for a possible stock market offering.
This reorganization signifies a shift in Carsome’s approach. They seem to focus on achieving financial sustainability while continuing to expand their reach. Long-term positioning would necessitate this move, especially as they navigate a competitive landscape.
Carsome possesses a bright future. In the coming years, the used car market is projected to experience significant expansion in Southeast Asia. Carsome is well-positioned to benefit from the growth, thanks to its strong platform, well-established network, and dedication to quality. Carsome continues to lead the used car e-commerce market in the region, regardless of whether they choose to prioritize further expansion or stability.
