Australian online used car platform, Carma, announced it had completed a US$52m (A$75m) Series A funding round, led by General Catalyst Partners and Tiger Global. Carma previously secured the largest seed round in Australian history, with US$20m (approx. A$28m) from Tiger Global in March 2021. The company has now raised over A$100m in funding.
Who were Carma’s investors for their Series A round?
Carma’s used car sales have been growing quickly since providing early access to Sydney clients in late 2021. The capital raise will accelerate its growth, and building the team, growing used car inventory and establishing reconditioning operations in Melbourne and Brisbane.
Joining Carma’s Series A round are several venture capital firms and a number of influential individual investors. Alongside the follow-on from Tiger Global, Carma welcomes lead investor General Catalyst, another global proponent of the online used car business model having been an early backer of Vroom, Cazoo, and Spinny, and an investor in Kavak.
General Catalyst also previously invested in Australian success stories including Canva, BigCommerce and Buildkite. Managing Director of General Catalyst, Adam Valkin, will take a seat on the Carma board. Other international venture investors joining the round include Entrée Capital and Avenir Growth, who have backed online used car portals in Europe and India. Australian investors include Five V Capital and family office Terrace Tower Group.
What are the stakeholder thoughts on Carma’s raise?
Lachlan MacGregor, Carma Co-founder and CEO, said, “We are proud of what we have built. We have a world-class team, a top used car reconditioning facility in Sydney, and a bespoke customer-centric platform, all supporting our end-to-end digital purchase process.”
“This funding will allow us to accelerate our growth interstate and develop our platform. To know that some of the most high-profile international investors with experience in this space have identified Carma as the player to back in Australia is incredibly gratifying,” Lachlan added.
Adam Valkin, General Catalyst Managing Director, commented, “Online used car buying platforms are fundamentally improving the customer experience associated with buying and selling cars globally. We are confident that Carma will have a similar impact in Australia.”
Adrian Mackenzie, Partner at Five V, said “Success comes down to the team and ability to execute. We have known Lachlan for many years and we are excited about the business that he and Yos are building. There’s an opening to build a clear category leader in this market.”
Yosuke Hall, Carma Co-founder and CCO, added, “The feedback we have received from customers has been universally positive to date. It’s clear that Australians are excited by the prospect of an easier and faster way to buy high-quality used cars from a trusted source.”
“Carma remains committed to becoming the leader in Australian used cars – not only by providing superior user experience, but also as an employer of choice. We know that success comes down to quality operations, seamless last-mile logistics, and top customer service. We’re thrilled to have the backing to continue executing on our vision,” Hall concluded.