Published on October 27th, 2023 | by Sounder Rajen0
DRB-Hicom Strategically Invests In Genie Malaysia, A Subsidiary Of Carro
Genie Malaysia is the fastest growing Malaysian auto fintech startup
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. Let’s see what this means for the Malaysian automotive industry.
Aaron Tan, co-founder and Group CEO of Carro says, “Fintech is an integral part of our digital used car ecosystem. DRB-Hicom’s strategic investment is a huge validation of Genie Malaysia’s differentiating business model. We are delighted to strengthen our partnership with DRB-Hicom, which has invested in Carro since 2021.”
Moreover, this unique partnership combines DRB-Hicom’s decades of automotive experience with Carro’s proprietary tech-enabled platform to redefine auto financing in Malaysia. This combines the best of both worlds as now DRB-Hicom can take advantage of the large network that Carro has.
Akkbar Danial, CEO of Eon and Head of Automotive Distribution, DRB-Hicom, believes the investment will benefit both parties. “Following our investment in Carro’s myTukar used car platform 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, adding 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.” Akkbar concluded.
On top of that, the investment is aligned with DRB-Hicom’s move to enhance its automotive distribution ecosystem. 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 of nearly RM600 million comprising a highly diverse loan portfolio. With a data-centric approach, its NPL ratio has been maintained at less than 2 percent, better than most of Genie Malaysia’s peers and even some banks.
Ernest Chew, Chief Financial Officer of Carro adds, “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 2 leading banks who have provided financing and are in the process of welcoming more.”
More information can be found on the official Carro website linked here.