Carro secures $75m multi-currency loan from HSBC

The loan will boost the company’s liquidity.

Carro has signed a loan agreement with HSBC, which is part of the bank’s $1.35b (US$1b) ASEAN Growth Fund.

The company secured a $75m multi-currency loan through the deal.

The loan will fund its fintech unit, Genie Financial Services. 

“Our fintech business, leveraging proprietary data-driven lending, has been growing prudently with a loan book exceeding $500m and NPL [non-performing loan] below 0.5%,” Carro CEO and co-founder Aaron Tan said. 

“Securing this landmark financing from HSBC is a huge validation of our digital ecosystem-led business model,” he added.

Carro CFO Ernest Chew said the loan strengthens the company’s balance sheet and diversifies its funding channel in Malaysia, allowing it to further grow its business. 

The second-hand car platform is currently present in seven markets, having just entered Hong Kong and Japan. It generates nearly $1.35b (US$1b) in revenues and has achieved a record EBITDA of $25.11m(US$34m).

US$1=S$1.35