Genie Malaysia is touted to be the fastest growing auto fintech startup in the country.
DRB-HICOM has recently made a strategic investment into Genie Malaysia, through its wholly owned subsidiary Edaran Otomobil Nasional Berhad (EON)
Genie Malaysia, a subsidiary of myTukar’s parent company Carro, is currently touted to be Malaysia’s fastest growing fintech startup. Despite only beginning operations in 2021, the company has since successfully built a loan book of nearly RM600 million comprising a highly diverse loan portfolio. With its data-centric approach too, the company has been able to maintain its NPL ratio at less than 2%, which is better than most of its peers and even some banks.
This recently announced partnership aims to leverage DRB-HICOM’s decades of automotive experience with Carro’s proprietary tech-enabled platform to redefine auto financing in Malaysia. The investment is aligned with DRB-HICOM’s move to enhance its automotive distribution eco-system, while also enabling cross-selling opportunities within myTukar’s vast dealer network, which comprises of over 2,600 dealers nationwide.
Aaron Tan, co-founder and Group CEO of Carro says of this deal, “Fintech is an integral part of our digital used car ecosystem. DRB-HICOM’s strategic investment is a huge validation of Genie Malaysia’s differentiating business model. We are delighted to strengthen our partnership with DRB-HICOM, which has invested in Carro since 2021.”
Akkbar Danial, CEO of EON and Head of Automotive Distribution, DRB-HICOM, meanwhile believes the investment will benefit both parties. “Following our investment in Carro, parent company of used car platform myTukar in 2021, we are excited to deepen this strategic partnership, and are confident that the synergy between our two parties will unlock unprecedented opportunities that will benefit our customers and drive mutual success,” says Akkbar.
He adds that the experience of both parties in their respective markets will be mutually beneficial. “As we venture into game-changing technology, our accumulated experience brings valuable insights and expertise to the table. We believe this experience will greatly benefit both parties as we navigate and innovate in this new technological landscape.”
Simon Chan, CEO of Genie Malaysia further states, “Genie Malaysia started because there is a ‘blue ocean’ market of underserved and unbanked car buyers who are unable to secure traditional bank financing. We have been able to combine data as well as the unique strengths of Carro and myTukar to democratise used car financing. Now everyone can own a car!”
Ernest Chew, Chief Financial Officer of Carro adds, “Genie Malaysia has been profitable from the first year. We have also shown how we can work with banks to help serve the underserved, whilst maintaining low to non-existent NPLs. Today, we are already working with 2 leading banks who have provided financing and are in the process of welcoming more.”