The S$75 million multi-currency loan diversifies Carro’s funding channel, particularly in Malaysia.

Singapore startup Carro announced  that it signed a S$75 million multi-currency loan with HSBC, making the home-grown company the first to tap HSBC’s Asean Growth Fund of US$1 billion.

The loan will be used to fund Genie Financial Services, a wholly owned subsidiary of Carrot that provides automotive financing in Singapore Malaysia, Indonesia, and Thailand.

Carro reported over 11 times year-on-year earnings before interest, depreciation, and amortisation (Ebitda) growth to hit a record US$34 million, based on its latest financial year ended Mar 31, 2024.

The Singapore-based online used car marketplace, which currently operates in seven markets, previously raised over S$700 million from SoftBank Vision Fund and several sovereign funds.

“Securing this landmark financing from HSBC is a huge validation of our digital ecosystem-led business model. This enables us to serve the underserved consumer segment even better,” said Aaron Tan, co-founder and chief executive officer of Carro.

Ernest Chew, chief financial officer of Carro, added: “This significantly strengthens our balance sheet and diversifies our funding channel particularly in Malaysia, so that we can focus on growing our business more effectively.”