KUALA LUMPUR (Sept 11): Carsome Group Inc, an integrated car e-commerce platform, on Wednesday announced that it has secured over RM200 million financing line from AMMB Holdings Bhd (KL:AMBANK) and Malayan Banking Bhd (KL:MAYBANK) to support its expansion plans.

The expansion includes accelerating its financing, insurance, aftersales and other ancillary offerings to provide dealers and customers with a comprehensive one-stop solution.

“With the additional financing support and our demonstrated capabilities, we are well-positioned to leverage our scale and further expand our business. This will allow us to better serve both current and new customers throughout their vehicle ownership journey,” said Carsome’s co-founder, chairman and group chief executive officer Eric Cheng in a statement.

Cheng said the company has established a strong operational track record with robust in-house origination and underwriting capabilities, achieving non-performing loans below 2% for retail and 0.1% for wholesale.

Carsome has continued its profitable growth trend since December 2023, reporting the trading of around 35,000 vehicles and a 9% quarter-on-quarter revenue increase to over US$310 million (RM1.3 billion) in the second quarter of 2024.

The company also achieved a gross margin of over 10% and tripled its earnings before interest, taxes, depreciation, and amortization compared to the preceding quarter.

"This quarter’s results reflect our ongoing profitable growth strategy. Our gross profit per unit is up by more than 5% q-o-q, even as customer acquisition costs decrease significantly, demonstrating our strong execution, value proposition, and brand equity. We are on track to deliver a record year,” Cheng added.