• Thu. Jul 25th, 2024

Carro Gets Loan of $56 Million from HSBC to Fund its Fintech Arm

John Wise

ByJohn Wise

Jul 4, 2024

Carro has signed a multi-currency loan with HSBC worth SGD 75 million, or $55.52 million. The online used car marketplace, which is based in Singapore, will use the loan to fund Genie Financial Services.

This is the company’s fintech arm. Carro said in a statement that it is one of the first clients of HSBC to benefit from the bank’s ASEAN Growth Fund that was launched recently.

The Statement

The Chief Executive Officer and Co-Founder of Carro, Aaron Tan, praised HSBC for being a supportive partner.

He said that the bank is aware of the importance of supporting regional startups like his own company for ensuring sustainable profitable growth.

He revealed that Carro’s fintech business has experienced prudent growth. Genie Financial Services focuses on proprietary data-driven lending.

It boasts a loan book that has surpassed SGD 500 million, or $370 million, while its non-performing loan (NPL) stands below 0.5%.

He said that this financing from HSBC validated the company’s business model, which is led by the digital ecosystem.

He added that it also empowers the company to provide better services to the underserved consumer segment.

The Benefits

Carro’s Chief Financial Officer, Ernest Chew, was also full of praise for HSBC because the bank is providing bespoke and creative financial solutions to startups.

He said that this kind of asset-backed financing is one-of-a-kind and very unique in the region. He stated that it would help strengthen Carro’s balance sheet.

Moreover, it would also help in diversifying the startup’s funding channel, especially in Malaysia. This would help Carro in focusing on expanding their business a lot more effectively.

He revealed that as of the end of their recent financial year, they already had a liquidity of SGD 350 million ($259 million).

However, now they will be able to add to their existing liquidity with SGD 75 million, or $55.52 million.

The Company

Genie Financial Services is currently operating in Thailand, Indonesia, Malaysia and Singapore, as a fintech automotive financing provider.

Carro currently has a presence in a total of seven markets, as it recently made an entry in Japan and Hong Kong.

The company generates an annual revenue of about $1 billion. Its financial year ended on March 24, which showed that the company has a positive operating profit.

It has managed to raise more than SGD 700 million, or $518 million from a number of sovereign funds and Softbank Vision Fund.

Meanwhile, HSBC has recently taken to provide working capital to leading high-growth companies in the booming digital economy of Southeast Asia.

The bank’s mission is to help these companies in growing their asset base and achieving economies of scale.

A statement from the bank said that it was delighted to offer Carro the multi-currency loan facility that would help it in growing its operations.   

John Wise

John Wise

John Wise is a seasoned fintech analyst and writer with over a decade of experience in the field. With a Master’s degree in Computer Science from MIT, he specializes in simplifying complex financial technologies for a broad audience. At FinTech Service Reviews, John provides insightful and thorough reviews, helping readers navigate the evolving landscape of financial technology with ease.

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