US growth capital firm General Catalyst has led a $75 million Series A funding round for online used car sales platform Carma.
Sydney-based Carma raised an unusually large $28 million seed round, led by US firm Tiger Global, in March 2021. Tiger Global has provided follow-on investment in new funding round. Other contributors to the round are Entrée Capital and Avenir Growth, firms which have backed online used car sales platforms in Europe and India. Local investors include Five V Capital and family office Terrace Tower Group.
Carma plans to use the additional capital to expand its operations, inventory and staff, including setting up reconditioning operations in Melbourne and Brisbane.
As a result of the new funding, General Catalyst managing director Adam Valkin will take a seat on Carma’s board.
Carma co-founder and chief executive Lachlan MacGregor said: “We are extremely proud of what we have built at Carma. We have a world-class team, an industry-leading used car reconditioning facility in Sydney, and a bespoke customer-centric platform, all supporting our end-to-end digital purchase process.
“This investment will allow us to accelerate our expansion interstate and continue to develop our platform, transforming the way Australians buy cars. 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.”
General Catalyst’s Valkin said: “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.”
Carma enables buyers to select a used car, organise inspection and financing online and have the vehicle delivered to their home. The company only sells vehicles it has previously inspected and bought so it is able to provide guaranteed title and three-month warranties.
Image: Carma chief commercial officer Yosuke Hall and chief executive Lachlan MacGregor.