(Bloomberg) — Carro, one of Southeast Asia’s biggest online marketplaces for used cars, has agreed to buy a 50% stake in Indonesian automotive financing and rental company MPM Rent for S$75 million ($54.5 million) to expand in the world’s fourth most populous country.
The deal will lead to a strategic partnership between Carro and PT Mitra Pinasthika Mustika Tbk, which owns the rest of MPM Rent, according to a statement reviewed by Bloomberg News.
“We remain steadfast and committed to investing and advancing our business in Indonesia despite the uncertain global macro environment,” Aaron Tan, Carro Chief Executive Officer, said in the statement.
Shares of Mitra Pinasthika surged as much as 6.3% in Monday trading, their largest intraday increase in more than two weeks, according to data compiled by Bloomberg.
Formally known as Trusty Cars Pte, Carro has raised more than $500 million since its inception in 2016, including a $360 million funding round last June led by SoftBank Vision Fund II.
The startup, valued at more than $1 billion, also counts Mitsubishi Corp. and the venture arm of MS&AD Insurance Group Holdings Inc. among its backers.
The company has over 2,000 staff and competes with Carousell and Carsome in Southeast Asia.
It’s targeting an initial public offering in the U.S. within the next two years, Tan said in an interview in 2021.
MPM Rent has a fleet size of about 13,000 cars with 2,500 drivers, providing vehicle rental services across Indonesia, its website shows.
(Updates with share price move in fourth paragraph.)
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