AAA Hubert Burda makes Carsome investment

Hubert Burda makes Carsome investment

Media company Hubert Burda has led a $19m series B round for Malaysia-based automotive e-commerce platform Carsome through its growth equity arm, Burda Principal Investments.

Venture capital firms Gobi Partners and Lumia Capital also participated in the round, as did venture debt provider InnoVen Capital.

Founded in 2015, Carsome operates an online platform where drivers can sell their used cars to dealers who bid for the vehicles. The company carries out inspection and valuation, facilitates the sale and payment process, and assists with delivery.

Carsome is present in Malaysia, Singapore, Indonesia and Thailand, and the series B proceeds will support growth in the latter two markets. It also intends to beef up marketing activities and add services such as financing and vehicle warranties.

Albert Shyy, principal at Burda Principal Investments, said: “We feel Southeast Asia’s burgeoning automotive sector is in the early stages of a digital transformation and believe there is a tremendous opportunity for Carsome to bridge the offline-to-online space.”

The round took Carsome’s total funding to more than $27m. 500 Startups and Idea River Run supplied $350,000 in seed capital for the company in 2015, before joining IMG Investment Partners to invest $2m in early 2016.

Gobi Partners subsequently led a $6m round for the company in June 2017 that included 500 Startups, Lumia Capital, InnoVen and Spiral Ventures.

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