The CEO of second-hand goods marketplace Carousell told CNBC that the company expects to “healthily” reduce its losses this year and get on the track to profitability.
“This year, we continue to expect healthy revenue growth,” Carousell co-founder and CEO Quek Siu Rui said on Monday. “I think that’s a very promising sign that we’re actually going to have healthy losses this year as well.” It added that the company was “on track” to achieve profitability plans.
In 2022, the Singapore-based company had revenue of $82.5 million, up 67% from the previous year, according to regulatory filings. However, losses will increase by 57% year-on-year in 2022 due to increased expenses.
Founded in 2012, the Singapore-based company is an online classifieds marketplace where users can list and sell their second-hand items in exchange for money.
“We recognize that the re-commerce opportunity is really big. We’re actually investing in developing these different initiatives and strategies,” Quek said on CNBC’s “Squawk Box Asia,” referring to garage sales. Whether it’s used or brand new. .
research shows A global circular economy that aims to reduce waste and promote recycling and reuse could generate $4.5 trillion in additional economic output by 2030.
Southeast Asia Expansion
From cars to fashion, Carousell has been actively expanding its business in Southeast Asia.
In 2019, both parties agreed Merger with Telenor Group’s classified advertising company 701Search, which operates Mudah in Malaysia, Chợ Tốt in Vietnam and OneKyat in Myanmar. That same year, Carousell acquired OLXPhilippines, which claims to be the Philippines’ largest online classifieds site.
it is also Acquisition of online automotive platform OneShift In 2018, the company certified sneaker and streetwear marketplace Ox Street in 2021 and launched the Ox Luxe service, which allows users to buy, sell and consign second-hand luxury goods such as handbags and watches.
Last year, Carousell acquired Singaporean second-hand fashion retailer refresh and Indonesian electronics retail platform Raku 6 to strengthen its expansion into fashion and electronics markets.
“We believe we can actually continue to have healthy growth in this very meaningful e-commerce growth direction,” Quek told CNBC.
“(With) the support of our investors, we actually have enough capital to execute on these strategies. So we’re very confident in our capital position.”
cost cutting
Carousell last raised $100 million in a funding round in September 2021, bringing its valuation to $1.1 billion.Last year, media reported that the company Abandon SPAC merger talks Working with US-based private equity firm L Catterton amid market volatility.
A SPAC (Special Purpose Acquisition Company) is a shell company that raises money through an initial public offering (IPO) and uses the cash to merge with a private company to take it public.
Challenging macroeconomic conditions, such as high interest rates and soaring inflation, have led companies to cancel or postpone initial public offering plans.
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