Singapore-based auto financing service platform CarDekho SEA has raised $60 million in equity funding, valuing the company at over $300 million, from Navis Capital Partners and Dragon Fund. This marks the company's first round of external funding, following a previous investment of $40 million from its parent company, CarDekho Group.

The funding will be used to support CarDekho SEA's further expansion into Southeast Asia, with a focus on the used car and bike financing industry in Indonesia and the used auto financing sector in the Philippines. According to Umang Kumar, co-founder and president of CarDekho, the company is exploring strategies to increase its presence in the region, including acquiring a used car financing platform or insurance brokerage platform in Indonesia and the Philippines.

Kumar revealed that the company has a few assets lined up for potential acquisition, with announcements expected within the next month or two. This inorganic growth strategy will complement CarDekho SEA's organic expansion plans across Southeast Asia. The company already has a significant presence in Indonesia, the Philippines, Thailand, Singapore, Malaysia, and Vietnam, and is eyeing expansion into new markets in 2026.

CarDekho SEA's unique approach as a comprehensive aggregator for auto financing services sets it apart from its peers. Unlike its competitors, the company does not take on credit risk, instead operating as an asset-light marketplace that connects used car dealers and agents with financial institutions. This approach has enabled CarDekho SEA to establish partnerships with over 50 financiers and 20,000 dealers and retail agents.

The company's technology-driven loan procedures, combined with AI and machine learning solutions, have helped reduce fraud and credit risks, providing more data to financing partners and enabling them to succeed in a rapidly changing technological environment. Since its launch, CarDekho SEA has experienced significant growth, with over 200,000 disbursements and over $1 billion in loans disbursed, representing a 50x increase in gross merchandise value over the past three years.

CarDekho SEA's primary customers are small-scale used car dealers, many of whom have less than ten cars in stock or no physical showroom at all. The company's platform aggregates demand from these individual dealers, connecting them to a wide network of financiers and offering access to a variety of financial products that were previously inaccessible to them. This has enabled the company to generate upwards of $50 million in revenue annually through per-loan commissions with financiers.

The latest funding round is a significant milestone for CarDekho SEA, marking a major step forward in its scale-up phase. As the company continues to expand its presence in Southeast Asia, it is likely to have a profound impact on the region's used car and bike financing markets, providing greater access to financing options for small-scale dealers and their customers.

With its unique approach, strong growth trajectory, and significant funding, CarDekho SEA is well-positioned to become a leading player in Southeast Asia's auto financing services market. As the company continues to innovate and expand, it will be interesting to see how it navigates the complexities of the region's diverse markets and regulatory environments.