HSBC lends $56 M to Carro to finance its fintech division Genie Financial Services
To finance its fintech division, Genie Financial Services, Singapore-based online used car marketplace Carro has agreed to a multi-currency loan with HSBC worth SGD 75 million ($55.52 million).
The company is the first customer of HSBC to access the bank’s newly established $1 billion ASEAN Growth Fund, according to a statement released by Carro on Thursday.
“HSBC has been a very supportive partner and one of very few banks who recognize the need to support regional start-ups like us to achieve sustainable profitable growth,” said Aaron Tan, Co-Founder and Chief Executive Officer of Carro.
With a loan book exceeding SGD 500 million ($370 million) and a non-performing loan (NPL) rate below 0.5 percent, he claims that the fintech company has been growing responsibly by utilizing proprietary data-driven lending.
“Securing this landmark financing from HSBC is a huge validation of our digital ecosystem-led business model,
“This enables us to serve the underserved consumer segment even better,” he added.
The chief financial officer of Carro, Ernest Chew, praised HSBC for its ability to design innovative and customized financing options for start-ups such as theirs, which led to the creation of this one-of-a-kind asset-backed financing in the area.
“This significantly strengthens our balance sheet and diversifies our funding channel particularly in Malaysia, so that we can focus on growing our business more effectively,
“This will add another SGD 75 million ($55.52 million) to our existing liquidity of nearly SGD 350 million ($259 million) as of our recent financial year-end,” he added.
In Singapore, Malaysia, Indonesia, and Thailand, Genie Financial Services is a cutting-edge fintech provider of auto loans.
Carro recently expanded into Japan and Hong Kong, bringing its market share to seven.
Based on its latest financial year ending in March 2024, the company generates nearly $1 billion in revenue, recently achieved over 11 times year-over-year growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach a record $34 million, and is operating profit positive.
The Softbank Vision Fund and various sovereign funds have contributed over SGD 700 million ($518 million) to the unicorn startup.
