Cheng said that Carsome would most likely be expanding into the Philippines through a joint venture with partners in the local area. Currently, the Philippines is the fourth biggest used vehicle market within the Southeast Asian region which is at similar levels of Malaysia's market.
Carsome is starting to face more competition locally as well. Carro, a rival company out of Singapore, recently announced their expansion into Malaysia by investing $30 million into a local car bidding platform, myTukar.
Carro is also expected to make more moves into the Malaysian market by the end of the year.
Despite this, Carsome seems prepared: "Whatever it is, we continue to prove ourselves right in terms of the way we run the business at Carsome," said Cheng. "Money is not everything, execution is key. Knowing the market is also very important, and we know our markets very well."
The company is expected to fundraise around $40 million during a Series C round by the end of 2019. Cheng didn't comment about any of the company's fundraising efforts, but he did mention that Carsome finished an $8 million fundraising deal with Joe Hirao, a Japanese investor, at the end of 2018.
The company isn't stopping there either and currently has plans for possible acquisitions and mergers to help improve their technology and service efforts.
Currently, Carsome's focus is similar to some of its rivals, to become a complete used car services experience by offering car retail, car inspections, and auto financing all in one place.
Right now the company has around $400 million worth of transactions every year throughout all four of their current markets. Malaysia currently makes up half of that number, but Indonesia is one of the fastest-growing markets for the company and is expected to match Malaysia's revenue levels within a year.
The company is aiming to add new technologies to its services, like AI, in order to keep up with similar companies who are making the same efforts.
"In China, I really like Chehaoduo. I like them because of how they think about space, which is very similar to ours. They have operations across C2C, B2C, C2B, financing, leasing, insurance -- it completely covers the entire business and this is very ambitious," said Cheng.
"We believe this is something that can be executed in this region. We want to be the biggest used car trading platform in Southeast Asia."
Cheng also mentioned the possibility of moving the company's headquarters into Singapore since the area has a bigger pool of talent and access to more funds and investors.
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