Carro secures $56 million multicurrency loan from HSBC to fund fintech arm Genie Financial Services

Online used car marketplace based in Singapore Chariot has signed a SGD75 million ($55.52 million) multi-currency loan with HSBC to fund its fintech arm, Genie Financial Services.

Carro said in a statement Thursday that the firm is the first of HSBC’s clients to tap into the bank’s recently launched $1 billion ASEAN Growth Fund.

“HSBC has been a very helpful partner and one of the very few banks that recognize the need to support regional start-ups like us to achieve profitable and sustainable growth,” said Aaron Tan, co-founder and chief executive officer of Carro.

According to him, the company’s fintech business, leveraging data-driven proprietary lending, has grown prudently with a loan book exceeding SGD 500 million ($370 million) and non-performing loans (NPLs) below 0 ,5%.

“Securing this historic funding from HSBC is a huge validation of our digital ecosystem-driven business model,

“This allows us to even better serve the underserved consumer segment,” he added.

Ernest Chew, Carro’s chief financial officer, also applauded HSBC’s ability to structure creative and bespoke financing solutions for start-ups like them, resulting in
This asset-backed financing is one of a kind in the region.

“This significantly strengthens our balance sheet and diversifies our financing channel, particularly in Malaysia, so that we can focus on growing our business more effectively,

“This will add another SGD75 million ($55.52 million) to our existing liquidity of almost SGD350 million ($259 million) at the end of our recent financial year,” he added.

Genie Financial Services is a next-generation automotive fintech financing provider based in Singapore, Malaysia, Indonesia and Thailand

Carro is currently present in seven markets, having just entered Hong Kong and Japan.

The company generates nearly $1 billion in revenue and recently achieved more than 11x year-over-year growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) to a record high of $34 million, and is reporting a positive operating profit, according to its latest figures. financial year expiring in March 2024.

The unicorn startup has raised over SGD700 million ($518 million) from Softbank Vision Fund and several sovereign wealth funds.

It should be noted that HSBC has embarked on a mission to support leading high-growth champions in Southeast Asia’s booming digital economy by providing critically needed work
capital to achieve economies of scale and increase its capital base.

According to the statement, Southeast Asia’s digital economy is among the fastest growing in the world with $218 billion in total transaction value, while used cars represent the largest consumer segment in the region with at least $60 billion dollars of transaction value.

“HSBC has a proud history and strong legacy in ASEAN in supporting entrepreneurs and expanding businesses,

“We are pleased to arrange a multi-currency loan for Carro, through our unique $1 billion ASEAN Growth Fund, as they grow their businesses,” said Amanda Murphy, Head of Commercial Banking, South and Southeast Asia, HSBC.

According to her, ASEAN’s booming digital economy has huge growth potential as the region’s digital native working population consumes more goods and services online.

Priya Kini, Head of Commercial Banking, HSBC Singapore, shared that during this period of market volatility, it is important that fast-growing businesses like Carro are continually supported to realize their full potential.

“We have a long-standing relationship with Carro, which began when they were still in the early stages of their growth,

“It is particularly gratifying to know that we can continue to strengthen our support through the HSBC ASEAN Growth Fund as they further scale and expand their business,” he added.

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