SoftBank-Backed Car Marketplace Carro Is Said to Explore US IPO

Carro, Southeast Asia's largest online used-car marketplace, is reportedly planning a US initial public offering (IPO) as early as 2026. This potential listing aims to raise up to $500 million and targets a valuation of over $3 billion. If successful, this would be the largest US listing for a Southeast Asian company since Sea's $989.3 million IPO in 2017 and the third-largest Southeast Asian high-tech IPO in the US.

The Singapore-based company, founded in 2015, operates a digital platform for buying and selling vehicles, and also offers insurance, financing, and after-sales services. Carro has a presence across the Asia-Pacific region, including Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong. It has over 4,500 employees and has raised more than $1 billion in debt and equity from investors such as Temasek and SoftBank.

Carro CEO Aaron Tan indicated that the timing of the IPO depends on meeting financial targets, specifically aiming for $120 million to $150 million in EBITDA for the next year, exceeding a planned $100 million. The company is also considering a dual listing, with potential venues including the US, Hong Kong, or Singapore. It has held discussions with banks like HSBC and UBS regarding financial advisory roles but has not yet made a final decision on financial advisors or listing venues.

In preparation for a potential listing, Carro is expanding its operations, including a foray into Australia. It recently acquired Australian used-car platform CarPlace, marking its entry into its eighth market in Asia-Pacific. The CEO also stated plans to pursue two to three acquisitions in the near future. Carro expects to achieve $100 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA) by its fiscal year ending March 2026.

A successful IPO for Carro could open doors for other regional unicorns like Carsome, Traveloka, and Xendit to pursue similar listings. Carro's listing would also represent the first major automotive tech and AI-driven commerce startup from Singapore to go public in the US.