iCar Asia makes US$3 million acquisition for Carmudi Indonesia to drive regional growth

Fri Sep 20, 2019 - 4:52am UTC
iCar Asia

iCarAsia

20/9/2019 – iCar Asia Limited, a leading network of automotive portals in Southeast Asia, has said that it is entering into a binding agreement to acquire automotive classifieds portal Carmudi Indonesia for US$3 million.

The acquisition is subjected to finalizing long form documents and is expected to be completed on or about 15 October 2019. The purchase will be paid from cash reserves in two separate payments, US$2 million upon completion of the deal and US$1 million on 15 October 2020.

Founded in 2013, Carmudi Indonesia has a well-established advertising and lead generation business servicing leading car manufacturers in Indonesia. Its website sees approximately 2 million visits every month.

Carmudi Indonesia also operates five physical car sales centres called Caresntros which are located across the cities of Semarang, Solo, Surabaya, and Yogyakarta. These centers act as a transaction platform for car dealers and leading car financing business, and generate finance commission income.

Meanwhile, ASX-listed iCar Asia owns and operates a network of automotive portals, among which include Carlist.my, LiveLifeDrive.com, Mobil123.com, One2Car.com, and seven others. Together these websites reach approximately 12 million car buyers and sellers in the region monthly. According to statistics on SimilarWeb, iCar website alone currently has almost six million visits per month.

Moving forward with this combined audience, iCar Asia predicts that it can more than double its Indonesian business revenue and increase growth rates, with synergies creating an even more powerful advertising platform.

Besides, the acquisition will also give iCar Asia the opportunity to expand and strengthen its market leading used car business with Indonesia’s #2 vertical automotive site, Carmudi.co.id.

So far, the group has been on track for EBITDA breakeven by the end of 2019. Last month, it announced 1H 2019 results with A$6.01 million (about US$ ) in revenue for a year on year growth of 20% with all three countries of operations registering positive growth in the period.

“We are delighted to have Carmudi Indonesia join iCar Asia and further strengthen our position in the Indonesian market in both the new and used car segments. This acquisition furthers our vision of being the platform that people turn to in order to solve all their automotive needs,” said Hamish Stone, iCar Asia’s Chief Executive Officer.

This news is published on Reuters.

Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.