Carro, a Singapore-headquartered, SoftBank-backed online car marketplace, has announced raising $60 million in a funding round anchored by Japan’s state-backed private-public fund Cool Japan Fund.
The fresh investment will be used to promote Japanese cars, both new and used, in Carro’s seven markets, including Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong, per the announcement.
It will also support efforts to highlight Japan’s advanced automotive technologies, such as plug-in hybrid systems, fuel cell innovations, and safety features, Carro said.
Demand for used cars and plug-in hybrids is expected to grow in Southeast Asia, driven by economic expansion, a rising middle-income population, and government subsidies for electric vehicles in markets such as Indonesia and Thailand.
“Japanese automakers have always had a strong presence and historical dominance in Asia Pacific… We are confident we can increase the market share of Japanese Plug-in Hybrid Electric Vehicles in time to come,” said Carro Co-founder and CEO Aaron Tan.
Cool Japan Fund was established in 2013 as a public-private partnership. It invests across food, media, lifestyle, and travel sectors to expand overseas demand for Japanese products and services.
Kenichi Kawasaki, president and CEO of Cool Japan Fund, said the fund aims to “cement dominance” of Japanese cars in the region.
“Through this investment in Carro, we aim to boost demand for Japanese cars and reinforce their value by showcasing Japan’s advanced automotive technologies,” he added.
Carro, which counts SoftBank Group, B Capital, Insignia Ventures Partners, and Temasek among its investors, operates a platform for its users to buy, sell, and lease used cars across Singapore, Malaysia, Indonesia, and Thailand.
Carro’s top shareholders prior to the latest funding round
The startup, one of the largest in the vertical, also provides auto loans for used car purchases in the region.
The Southeast Asian unicorn is preparing for an initial public offering that could offer a glimmer of hope for venture capital funds scrambling for liquidity in one of the bleakest exit environments in the region.
At DealStreetAsia’s PE-VC Summit in 2025, Tan said Carro is preparing for an IPO but has not decided on the location yet.
The unicorn startup has raised over S$700 million from Softbank Vision Fund and several sovereign funds.
