Southeast Asia’s vehicle market wars are entering into high drive. Today Carsome Group, among the area’s biggest online utilized vehicle markets, stated it prepares to acquire listings platform iCar Asia in a deal worth more than $200 million.
Carsome has actually consented to acquire 19.9% of iCar Asia from Malaysia web corporation Catcha Group. In exchange, Catcha Group will ended up being a investor in Carsome Group. Carsome and Catcha Group have actually likewise made a joint proposition to iCar Asia’s directors to purchase the remainder of the business from its investors.
Carsome competitor Carro exposed one month ago that it raised a $360 million Series C led by SoftBank Vision Fund 2, increasing it to unicorn status. A day after Carro’s statement, DealStreetAsia reported that Carsome is in talk with raise over $200 million in a pre-IPO round.
Carsome hasn’t verified the financing, however it has actually been making transfer to broaden its reach, consisting of a tactical financial investment in PT Universal, an offline vehicle and motorbike auction business that has retail branches in 5 Indonesian cities. Carsome stated its financial investment in PT Universal will permit it to double its automobile deal volumes in Indonesia.
Now Carsome states its combination with iCar Asia will develop a market that is targeting $1 billion in income for this year, with about 100,000 vehicles negotiated every year, more than 460,000 live partner listings and over 13,000 vehicle dealerships it its network.
iCar Asia, which is noted on the Australian stock exchange, revealed in 2015 that it had actually gotten a takeover deal from China-based online vehicle market Autohome. Catcha Group creator Patrick Grove informed the Australian Financial Review that proposition was “one of the casualties of the cold war” in between China and Australia.
In a press declaration, Carsome co-founder and group president Eric Cheng stated the deal “is the first step toward consolidation to form the largest digital automotive group in terms of revenue, user base, largest live listing and the best end-to-end fulfilment capacity in the region.”