Jakarta, CNBC Indonesia – The startup providing the used car buying and selling ecosystem, Carsome, is said to have laid off hundreds of employees in Indonesia and Thailand.
Tech in Asia quote Bloomberg, stated that Carsome was laying off hundreds of employees to achieve profitability ahead of its initial public offering (IPO).
The majority of employees affected are workers based in Indonesia and Thailand. The number of Carsome employees is estimated at 4,000 people spread across several markets in Southeast Asia.
The decision to carry out layoffs was made even though the company claimed to have abundant cash last June. At that time, Carsome announced a round of fundraising from existing and new investors.
Existing investors who have returned to invest in Carsome are Qatar Investment Authority, 65 Equity Partners, Gobi Partners, Asia Partners, and Seatown Private Capital Master Fund.
Meanwhile, the new investor in Carsome is EvolutionX Debt Capital, a platform owned by DBS and Temasek, which provides long-term debt financing for advanced development stage startups.
After this capital injection, Carsome claims to have made the company’s cash reach US$200 million (around Rp. 3.1 trillion).
Carsome operates used car buying and selling services in Malaysia, Indonesia, Thailand and Singapore. Apart from providing used car search services for consumers, Carsome also collaborates with used car sellers and provides inspection, ownership transfer and financing services.
Throughout 2022, Carsome claims revenue growth of 250 percent to US$ 1.5 billion. Carsome employs 4,000 people across Asia and sells more than 150,000 cars every year with monthly active users reaching 15 million.
[Gambas:Video CNBC]
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