Edaran Otomobil Nasional Berhad (EON), a wholly-owned subsidiary of DRB-HICOM (DRB-HICOM), has made a strategic investment in Genie Malaysia, a subsidiary of Carro, Southeast Asia’s largest and most profitable online used car platform.
Aaron Tan, co-founder and Group CEO of Carro said, “Fintech is an integral part of our digital used car ecosystem. DRB-HICOM’s strategic investment greatly validates Genie Malaysia’s differentiating business model. We are delighted to strengthen our partnership with DRB-HICOM, which has invested in Carro since 2021.”
This unique partnership combines DRB-HICOM’s decades of automotive experience with Carro’s proprietary tech-enabled platform to redefine auto financing in Malaysia.
Akkbar Danial, CEO of EON and head of automotive distribution, DRB-HICOM, believes the investment will benefit both parties. “Following our investment in Carro, parent company of used car platform myTukar in 2021, we are excited to deepen this strategic partnership, and are confident that the synergy between our two parties will unlock unprecedented opportunities that will benefit our customers and drive mutual success,” he said.
Akbar added that the experience of both parties in their respective markets will be mutually beneficial. “As we venture into game-changing technology, our accumulated experience brings valuable insights and expertise to the table. We believe this experience will greatly benefit both parties as we navigate and innovate in this new technological landscape.”
The investment is aligned with DRB-HICOM’s move to enhance its automotive distribution eco-system. This collaboration also unlocks valuable cross-selling opportunities for DRB-HICOM within myTukar’s dealer network, comprising over 2,600 dealers nationwide.
Beginning operations only in 2021, Genie Malaysia has successfully built a loan book for nearly RM600 million comprising a highly diverse loan portfolio. With a data-centric approach, its NPL ratio has been maintained at less than 2%, better than most of Genie Malaysia’s peers and even some banks.
Simon Chan, CEO of Genie Malaysia said, “Genie Malaysia started because there is a ‘blue ocean’ market of underserved and unbanked car buyers who are unable to secure traditional bank financing. We have been able to combine data as well as the unique strengths of Carro and myTukar to democratise used car financing. Now everyone can own a car!”
Ernest Chew, chief financial officer of Carro added, “Genie Malaysia has been profitable from the first year. We have also shown how we can work with banks to help serve the underserved, whilst maintaining low to non-existent NPLs. Today, we are already working with two leading banks who have provided financing and are in the process of welcoming more.”
