Carro Considers M&A and Australian Expansion Ahead of Possible Dual Listing

Carro, Southeast Asia’s largest online used-car marketplace, is exploring a dual listing and plans to strengthen its position through expansion into Australia and two to three acquisitions in the coming quarter, its CEO said.

In August, Reuters reported that the company was considering a U.S. IPO with a valuation of over $3 billion. According to Refinitiv LSEG, this would be the largest listing from Southeast Asia in the U.S. since SEA Group’s $989 million funding round in 2017.

If successful, it would also mark Singapore’s first major automotive tech and commerce startup to go public in the U.S.

Co-founder and CEO Aaron Tan said, “We haven’t yet decided where we want to list—whether it’s the U.S., Hong Kong, or Singapore. A dual listing is definitely on the table.”

Speaking to Reuters during a business and leadership conference in Singapore, Tan revealed that Carro has not yet appointed a financial advisor for the potential IPO but is in discussions with banks including HSBC and UBS. He added that decisions on advisory appointments would be made once listing venues are finalized.

Tan noted that the timing of the IPO would depend on, among other factors, the company’s ability to meet its near-term financial targets.

“I would only list the business when I have more clarity—for example, if my plan is for $100 million and I see an EBITDA of $120 to $150 million next year,” he said.

Neither Tan nor Carro had previously disclosed their expansion and listing plans.

Backed by investors including Temasek and SoftBank Group, Carro operates a digital platform that connects consumers and dealers for buying and selling vehicles, while also offering insurance, financing, and after-sales services.

In addition to Singapore, the company has a presence in Asia-Pacific markets including Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong, according to its website.

Carro is planning to enter the Australian market, where it intends to offer its full range of services.

Without providing specific details, Tan mentioned that the company aims to acquire two to three firms in the next quarter. Last year, Carro entered Hong Kong by acquiring a local used-car platform, Beyond Cars, which was later rebranded as Carro.

Tan also highlighted Carro’s strategic investment in artificial intelligence (AI), stating that the technology is being applied across sales, vehicle inspections, and backend functions such as legal, financing, and marketing.

“We’ve already reduced our overall tech costs by 20% to 30% through the use of AI,” he said.