Online car portals merge to largest auto marketplace in Southeast Asia

Malaysia’s used car online platform Carsome Group is teaming up with its competitor, Kuala Lumpur-headquartered and Australia-listed iCar Asia in a $200-million share-swap deal that will create the largest used car digital automotive marketplace in Southeast Asia.

This will drive the combined valuation of the integrated company to over $1 billion, making it a tech unicorn, the first in Malaysia.

Carsome has entered into an agreement to acquire 19.9 per cent of iCar Asia’s shares from owner Catcha Group in a share deal which will result in Catcha becoming a shareholder in Carsome, the companies announced on July 13.

At the same time, Carsome and Catcha have also made a joint proposal to the independent directors of iCar Asia to acquire the balance of 80.1 per cent of iCar from its shareholders. The total transaction value is estimated at over $200 million.

Building momentum for planned stock listing in the US

The deal is widely seen as building momentum towards an expected stock exchange listing by Carsome in the US, for which Catcha has already set up a special purpose acquisition company, or Spac, called Catcha Investment Corporation at the New York Stock Exchange.

Carsome said that the proposed integration between Carsome and iCar Asia offered “significant strengths” such as a target of $1 billion revenue for 2021 and the largest automotive data set that has around 100,000 cars transacted annually, over ten million monthly unique visitors visiting the platforms, more than 460,000 live partner listings and over 13,000 car dealers in its network.

Tapping a $55-billion market for automobile trade in Southeast Asia

The combined solutions of the two companies would offer an “end-to-end, super-app experience” that covered the entire car buying and selling value chain, it added.

Both Carsome and iCar Asia are operating in the Malaysian, Thai, Indonesian and Singapore markets, with Carsome being a leader in the online used car buying and selling market, while iCar Asia is a leading automotive listings platform. Both are now together tapping a market in a region that trades over $55 billion worth of automobiles annually, according to latest industry data.



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Malaysia's used car online platform Carsome Group is teaming up with its competitor, Kuala Lumpur-headquartered and Australia-listed iCar Asia in a $200-million share-swap deal that will create the largest used car digital automotive marketplace in Southeast Asia. This will drive the combined valuation of the integrated company to over $1 billion, making it a tech unicorn, the first in Malaysia. Carsome has entered into an agreement to acquire 19.9 per cent of iCar Asia’s shares from owner Catcha Group in a share deal which will result in Catcha becoming a shareholder in Carsome, the companies announced on July 13. At...

Malaysia’s used car online platform Carsome Group is teaming up with its competitor, Kuala Lumpur-headquartered and Australia-listed iCar Asia in a $200-million share-swap deal that will create the largest used car digital automotive marketplace in Southeast Asia.

This will drive the combined valuation of the integrated company to over $1 billion, making it a tech unicorn, the first in Malaysia.

Carsome has entered into an agreement to acquire 19.9 per cent of iCar Asia’s shares from owner Catcha Group in a share deal which will result in Catcha becoming a shareholder in Carsome, the companies announced on July 13.

At the same time, Carsome and Catcha have also made a joint proposal to the independent directors of iCar Asia to acquire the balance of 80.1 per cent of iCar from its shareholders. The total transaction value is estimated at over $200 million.

Building momentum for planned stock listing in the US

The deal is widely seen as building momentum towards an expected stock exchange listing by Carsome in the US, for which Catcha has already set up a special purpose acquisition company, or Spac, called Catcha Investment Corporation at the New York Stock Exchange.

Carsome said that the proposed integration between Carsome and iCar Asia offered “significant strengths” such as a target of $1 billion revenue for 2021 and the largest automotive data set that has around 100,000 cars transacted annually, over ten million monthly unique visitors visiting the platforms, more than 460,000 live partner listings and over 13,000 car dealers in its network.

Tapping a $55-billion market for automobile trade in Southeast Asia

The combined solutions of the two companies would offer an “end-to-end, super-app experience” that covered the entire car buying and selling value chain, it added.

Both Carsome and iCar Asia are operating in the Malaysian, Thai, Indonesian and Singapore markets, with Carsome being a leader in the online used car buying and selling market, while iCar Asia is a leading automotive listings platform. Both are now together tapping a market in a region that trades over $55 billion worth of automobiles annually, according to latest industry data.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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