Carousell Expects to Reduce Losses and Achieve Profitability
Carousell, a secondhand goods marketplace, is optimistic about reducing its losses and reaching profitability this year, according to CEO Quek Siu Rui. Despite experiencing a 57% increase in losses in 2022 due to higher expenses, the Singapore-based company saw a 67% rise in revenue, reaching $82.5 million. Carousell was established in 2012 as an online classified advertisements platform for users to sell their used items.
Southeast Asia Expansion
Carousell has been actively expanding its presence across Southeast Asia. In 2019, it merged with Telenor Group’s classifieds firm 701Search and acquired OLX Philippines. The company also purchased OneShift, Ox Street, and launched the Ox Luxe service for pre-owned luxury items. Last year, Carousell further expanded into the fashion and electronics markets by acquiring Refash and Laku6.
Confidence in Growth and Cost Cutting
Quek expressed confidence in Carousell’s ability to achieve healthy growth in the recommerce sector with support from investors. The company raised $100 million in funding in September 2021, bringing its valuation to $1.1 billion. While Carousell had previously considered a SPAC merger with L Catterton, talks were abandoned due to market volatility caused by challenging macroeconomic conditions such as high interest rates and inflation.
Hot Take: Carousell Aims for Profitability Amidst Expansion
Carousell is optimistic about reducing its losses and achieving profitability this year as it expands its presence across Southeast Asia. Despite facing increased expenses and wider losses in 2022, the company experienced significant revenue growth. Carousell’s strategic acquisitions and initiatives in the recommerce sector, along with strong investor support, position it for continued growth. However, challenges such as market volatility and macroeconomic conditions may impact its plans. Overall, Carousell remains confident in its ability to capitalize on the circular economy and generate healthy growth in the future.
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