Singapore unicorns eye growth amid challenges on global front

Companies expanding overseas despite difficulties with funding, regulatory hurdles

- Timothy Goh

High-flying local start-ups valued at over US$1 billion (S$1.3 billion) – known as unicorns in the financial world – are seeking growth opportunities amid challenges on several fronts.

Bosses told The Straits Times that their companies are expanding into overseas markets despite difficulties securing funding, regulatory hurdles and layoffs. Some are also weighing a share market listing, but they declined to specify a timing and location.

Mr Aaron Tan, co-founder and chief executive of used-car market Carro, said his company faced its "most difficult times" during the pandemic, just before it achieved unicorn status following a US$360 million capital injection from Temasek and Japan's SoftBank Group in 2021.

"It was impossible to raise funds and we didn't want to cut headcount, which was super tough, given that sales had gone to zero," he said.

"We came together to re-strategise quickly, management took pay cuts and looked into alternative revenue sources. The net result was that we continued to grow despite Covid-19."

Carro has expanded its services to Japan and Hong Kong since hitting unicorn status, offering consumers and dealers the ability to buy and sell vehicles, along with insurance and financing options.

The firm is adding staff in these markets but has no concrete plans for expansion or hiring in Singapore at the moment. But it is recruiting artificial intelligence (AI) talent "globally" as the firm intends to boost AI usage in its operations, said Mr Tan.

He declined to reveal Carro's valuation but said that it has never decreased, and is now "well over US$1 billion".

Mr Tan said the company has been "ready from an accounting standpoint" for a share market listing and has hired more staff to prepare for it.