A disruptive growth strategy, including aggressive acquisitions and takeovers, entering the Australian market with a high bid price, and a dual stock market listing, made headlines when Singapore-based Carro, the largest online used-car marketplace in Southeast Asia, announced its plans on September 12, 2025.
With the digital and sustainability-oriented rebirth of the global used-car industry, the ambitious roadmap made Carro the biggest player in the Asia-Pacific market and beyond. This paper examines the potential impact of the strategic actions initiated by Carro on transforming the automotive industry and why the world is paying attention to them.
From Singapore Startup to Regional Leader
Since its launch in 2015, Carro has revolutionised the process of buying used cars in Asia. The company was established by Aaron Tan and has expanded to be an entirely different ecosystem, which includes car inspection, car financing, car insurance, and after-sales services.
Carro operates in Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong and has been able to use advanced technology to simplify transactions. Its recent takeover of Hong Kong-based Beyond Cars, which was now rebranded under the name Carro, has given it a good presence in the region.
In less than ten years, Carro has reached unicorn status, having raised more than $1 billion in investors such as Temasek Holdings and SoftBank Group with a valuation worth more than 1 billion dollars. The company is expected to record higher revenues of up to $500 million in 2024 due to the skyrocketing demand for affordable used cars as new car prices continue to increase.
The Carro tech-based model can find one such market in the used-car market in Southeast Asia, which is estimated to reach 50 billion by 2027, and 70 per cent of the sales are made online. Going by Tan, we are making car ownership transparent and accessible to millions.
M&A Strategy to Supercharge Growth
The vision of 2025 by Carro is based on a strong mergers and acquisitions strategy. On September 12, CEO Aaron Tan stated that the company would have two to three deals finalised by mid-2026, and these deals would be in the areas of auto financing, logistics, and vehicle servicing.
Those acquisitions are meant to enhance the end-to-end ecosystem of Carro and allow it to penetrate the market a bit more quickly and offer better services to its customers. The blueprint to this strategy is seen in the success of its acquisition in Hong Kong, which saw the company augment local operations by 40 per cent.
According to the industry observers, Carro is looking to make acquisitions of up to 100-300 million dollars each, through its huge cash hoard. Such a strategy is in line with more general tendencies in the tech scene in Southeast Asia, as consolidation is the key to defeating other rivals, such as Carvana or local competitors.
Acquisitions will allow Carro to absorb new high-tech capabilities in a shorter time than organic development. Tan underlined the proactive position in the saturated market by saying that M&A is our shortcut to a seamless automotive platform.
Breaking into Australia’s $30 Billion Market
The proposed 2026 expansion of Carro in Australia will be a key to its international growth. The Australian used-car market, estimated to be worth more than 30 billion a year, is ready to be disrupted, as it is rather fragmented, and increasingly requires digital options.
Carro aims to make its entire portfolio of services (online auctions, certified check-ups, and financing) Australian-centric. The company has an initial capital of $ 50 million and is setting up hubs in Sydney and Melbourne, while also collaborating with local insurers and financial institutions.
The sales of used cars in Australia after the pandemic were up 15 per cent each year, as customers have been looking to buy alternative vehicles due to the high prices of new electric cars. Carro could become a threat to competitors by offering AI-based pricing and delivering across the country as opposed to Carsales.com.au. Tan said: Australia is a good country to implement our model.
Are we introducing trust and efficiency to a market that is open to change? This action puts Carro in the position to win over urban consumers, specifically the millennials, with their focus on convenience and transparency.
Dual Listing to Enhance International Presence
Carro is creating buzz in the financial market by its possible dual listing on the big exchanges like Nasdaq, Hong Kong Stock Exchange or Singapore Exchange. This strategy was announced on September 12 and is potentially worth Carro up to 3-4 billion US dollars, the largest tech IPO in Southeast Asia since that of Sea Limited in 2017.
Although it is not a verified timeline, Tan stated that the listing would be dependent on reaching $100 million in EBITDA, though estimates showed it would be $120-150 million in 2026.
Dual listing would open up a variety of capital markets to Carro, powering its M&A and growth ambitions. Negotiations are being done with banks, including HSBC and UBS; however, advisors are not fixed.
In the case of the startup ecosystem in Singapore, listing would provide a showcase of the potential of the region in the field of automotive technology. Tan said that they are looking into every opportunity to make more out of it and highlighted the global ambitions of Carro.
Financial Strength and Market Resilience
The financial performance that Carro has supports its ambitious schemes. Revenues are expected to increase 25% to $300 million in the first half of 2025, and gross margins will be 18% following simplified operations.
EBITDA goals are achievable with the assistance of balanced revenue flows: 60 per cent of vehicle sales, 30 per cent of the services and 10 per cent financing. Investors such as SoftBank are still optimistic, and analysts predict a compound annual growth rate of 30 per cent through 2028.
Carro has a technological competitive advantage and local knowledge, giving it a competitive advantage despite the obstacles such as currency and regulatory complexity in new markets. Its target of certified low-emission cars is in tandem with global sustainability tendencies, which increases its attractiveness to the environmentally conscious buyers.
Redefining the Global Used-Car Industry
The September 12 announcements from Carro indicate a seismic shift in the car industry. When M&A is combined with international expansion and capital market strategies, the company will be at the forefront of digitalising used-car sales. Its Australian operation would be a case study for other future incursions into the West, and a dual listing would solidify its international positioning.
Among consumers, the Carro platform will guarantee increased accessibility and confidence in an otherwise secretive sector. To the competitors it sets the bar higher where innovation is challenged in a fast changing market.
We are not only selling cars, but that is what Tan perfectly described as, We are defining the future of mobility. All these actions are pushing the direction of Carro becoming a leader in the global automotive industry, and it is a story to follow in 2025 and beyond.
