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Carro acquires Beyond Cars, bets big on Hong Kong’s strong EV growth

Southeast Asia’s online used car platform unicorn, Carro, has acquired Beyond Cars, a used car platform, to expand its business to Hong Kong.

The terms of the deal remain undisclosed.

Singapore-based Carro will work towards expanding Beyond Cars’s network of partnerships and further developing ancillary services across insurtech, financing, and aftersales in Hong Kong.

It is looking to accelerate Beyond Cars’s growth, with an expected over 50 per cent Compound Annual Growth Rate (CAGR) in the next three years.

Also Read: Carro becomes unicorn following US$360M Series C raise, plans to go public in 18-24 months

Carro’s data-driven platform and its full-suite tech — including proprietary technologies and Al capabilities across pricing, inventory management, and inspection processes – will be integrated into Beyond Cars’s platform.

Beyond Cars co-founder and CEO Garry Yu and COO Luke Yip will continue to helm the business with the team in Hong Kong. Yu will report directly to Fong Hon Sum, Carro CEO of International Marketplace.

With Hong Kong under its belt, Carro is now present in seven markets, including Singapore, Malaysia, Indonesia, Thailand, Japan, and Taiwan.

“We see huge potential in Hong Kong in the coming years,” said Carro Co-Founder and Group CEO Aaron Tan. “Beyond Cars is one of the rare and leading players leveraging e-commerce channels and technology in Hong Kong’s used car market – already we’re definitely seeing a shared strategy and alignment in business goals.”

Founded in 2016, Beyond Cars provides consignment services, dealer financing, hire-purchase financing, and insurance services, in addition to providing a platform to buy and sell used cars. The company claims to have been profitable for three years.

Hong Kong is seeing strong demand and hype for electric vehicles (EVs), partially driven by the government waivers and its pledge that the registration of petrol cars, including hybrids, will not be accepted from 2035.

Also Read: ‘We aim to transform car ownership through our 360-degree approach’: Carro Founder Aaron Tan

“The high penetration of EVs in Hong Kong will enable us to further enhance our pricing algorithms and provide end-to-end solutions tailored to EVs,” added Tan. “With an already strong relationship with multiple global EV manufacturers and the capabilities to inspect, service and maintain vehicles, we also want to take our expertise to Hong Kong and become a trusted choice for consumers looking for pre-owned EVs that are as good as new.”

In 2021, Carro raised US$360 million in a Series C funding round led by SoftBank Vision Fund 2, making it Southeast Asia’s first automotive marketplace unicorn. Prior to this, Carro bagged a US$110 million raise in debt financing last year.

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