Carsome buys stake in Indonesia’s PT Universal Collection

by NUR HAZIQAH A MALEK / pic by TMR FILE

SOUTH-EAST Asia’s largest integrated car e-commerce platform has acquired an all-equity stake in a Jakarta-based car and motorcycle auction service, PT Universal Collection (PT UC), which marks its first investment in the region for the year.

Carsome Indonesia’s country head Delly Nugraha has also been appointed as PT UC president director.

“We are really excited to invest into PT UC. This investment serves as a strategic move for Carsome to open up more opportunities and networks, and to significantly expand our operations in Indonesia, a key South-East Asia market for Carsome,” he said in a statement yesterday.

He added that through PT UC’s access to used car supplies in the market, Carsome’s dealer partners will enjoy more inventory diversity and broader options.

“PT UC’s suppliers, on the other hand, will be opened to a wider demand pool, broadening their accessibility in the used car market,” he said.

PT UC is an offline car and motorcycle auction service company based in Jakarta which transacted nearly 30,000 vehicles in 2020 with branches in South Tangerang, Bandung, Yogyakarta and Malang outside of Jakarta.

The investment into PT UC would allow Carsome to double its automotive transaction volumes in Indonesia, and set the car e-commerce company a step closer to delivering on its vision of building a regional, end-to-end integrated online used car ecosystem for dealers and consumers.

The deal allows Carsome to expand its network coverage and access to financial and leasing providers and will make it the largest omnichannel integrated e-commerce platform in the region.

According to the Carsome Consumer Survey earlier this year, Indonesian consumers have high interest in buying or selling a used car.

The survey found at least 64% of Indonesian consumers are interested in purchasing a car between April to September 2021, and they are optimistic their purchasing power will strengthen on the back of more disposable income.

Carsome continues to see strong growth in the region, including in Indonesia where it is set to double transaction volumes in 2021. As of April 2021, the company had tracked over 9,000 used car transactions per month or over 100,000 on an annualised basis.

This places it on track to hit over US$1 billion (RM4.15 billion) in revenue for 2021, as it has reached an annualised revenue of around US$800 million.

Carsome has expressed interest in going public, specifically via a merger with a special purpose acquisition company or a conventional public offer.

News reports suggested that the company could seek around US$2 billion in valuation and is looking at conducting a pre-IPO round with hopes to raise US$150 million.