Carsome Group, a leading online marketplace for used cars in Southeast Asia, is reportedly initiating another round of layoffs as part of its cost-reduction strategy.
Carsome initiates new round of layoffs
This initiative aims to achieve profitability in light of a possible initial public offering (IPO).
Currently employing around 4,000 people, Carsome is making staff cuts throughout Southeast Asia, particularly in Indonesia and Thailand.
Sources, preferring anonymity revealed to FMT that these regions, which Carsome entered in 2017, are experiencing significant operational reductions.
It is also worth noting that this isn’t the first instance of such a move; last year, the company announced layoffs affecting 10% of its staff.
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Delayed planned dual listing in S’pore in US last year
Malaysia’s most valuable tech startup, Carsome, delayed its planned dual listing in Singapore and the U.S. last year amid concerns about macroeconomic factors affecting its valuation.
CEO Eric Cheng stated in July that the company is on course to break even this year and expects a profitable 2024.
In anticipation of a potential Initial Public Offering (IPO), Carsome is streamlining its operations to swiftly seize market opportunities.
The company, while not specifying numbers, acknowledged workforce adjustments in a recent statement to Bloomberg.
Despite the current economic challenges, including higher interest rates, slower growth, and geopolitical uncertainties, Carsome remains committed to investing in its existing markets.
The company targets accelerated profitable growth by 2024.
Carsome raised US$290 million(RM13.7 billion) in an earlier funding round, reaching a valuation of US$1.7 billion(RM79 billion).
Founded in 2015, Carsome has expanded into Indonesia, Thailand, and Singapore, collaborating with over 13,000 dealers. Last year, the company sold more than 150,000 cars, according to its website.
