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CarDekho SEA, a Singapore-based car financing service platform, has raised $60 million in capital from Navis Capital Partners and Dragon Fund, valuing the company at more than $300 million. This is the first round of external funding after an earlier investment of $40 million by its parent company CarDekho Group.
Company, Southeast Asia Unit CarDekho Group of IndiaCarDekho co-founder and president Umang Kumar said in an interview that he will use the funding to support further expansion into Southeast Asia, focusing on the used car and bike financing industry in Indonesia and the used car financing sector in the Philippines. with TechCrunch.
Kumar told TechCrunch that acquiring a used car financing platform or an insurance brokerage platform in Indonesia and the Philippines could be one of its strategies to increase its presence in the region.
“We have several assets lined up in terms of what we’re going to look at. You may hear something along these lines within a month or two…we will be actively looking at activities. The idea did not develop completely organically. So we will look at some inorganic acquisition as we build our business in the Southeast,” Kumar said.
Founded in 2020, the company already has a significant presence in Indonesia (OTO Indonesia) and the Philippines (Carmudi Philippines and Zigwheels Philippines). It is also present in several other Southeast Asian markets such as Thailand, Singapore, Malaysia and Vietnam, and is set to expand into new markets in 2026.
Kumar explained that the company initially had a joint venture partner in Indonesia, but later bought out the local partner outright and owned 100% of the venture between 2019 and 2020. The acquisition spree continues with the company acquiring Philippines-based Carmudi. , Indonesia and Thailand, will expand to SEA in 2021, Kumar explained.
Unlike its peers, CarDekho SEO acts as a comprehensive aggregator for auto financing services. Its main competitor used to be Moladin, now it has become a full-fledged lender.
CarDekho SEA highlights its strengths including technology-driven loan procedures, an asset-light market approach with no credit risk, a wide network of used car dealers and agents, and strong partnerships with financial institutions. CarDekho SEA will use AI and machine learning solutions to provide financial partners with more information to reduce fraud and credit risks and succeed in the changing technological environment.
Since its inception, the company has experienced significant growth with over 200,000 payments and over $1 billion in loans. This represents a 50-fold increase in total merchandise value in the last three years and building cooperative relationships with more than 50 financiers and 20,000 dealers and retail agents.
Its primary customers are small-scale used car dealers, many with fewer than ten vehicles in stock or no physical showrooms. “Due to their sub-scale presence, financiers often find it difficult to service them directly,” the CEO said. “Our platform aggregates demand from these individual dealers, connecting them to a broad network of financiers and offering access to a variety of financial products for themselves and their customers – products that were previously unavailable to them.”
The company is expanding, generating more than $50 million annually in commissions per loan with financiers.
