Secondhand goods marketplace Carousell is making significant strides towards profitability, according to its CEO, Quek Siu Rui. The Singapore-based company reported $82.5 million in revenue for 2022, a 67% increase from the previous year. Despite this growth, losses widened by 57% year-on-year due to higher expenses. Quek remains optimistic about the firm’s financial outlook for 2023, with plans to “healthily” reduce losses while continuing to grow revenue.
Founded in 2012, Carousell initially operated as an online classified advertisements platform, allowing users to list and sell their used goods. Over the years, it has expanded its offerings, aggressively entering new markets and diversifying its services. The company’s strategy includes the sale of both used and brand-new items, aligning with the growing recommerce trend, which seeks to reduce waste and promote recycling and reuse.
Carousell has been expanding its presence across Southeast Asia, including mergers and acquisitions in markets such as Malaysia, Vietnam, Myanmar, and the Philippines. It has also ventured into various product categories, including automobiles, fashion, electronics, luxury items, and more. Last year, it acquired second-hand fashion retailer Refash and Indonesian electronics recommerce platform Laku6 to bolster its presence in these markets.
While Carousell’s journey toward profitability involved a headcount reduction of about 10% in late 2022, the company remains well-capitalized and confident about its future prospects. It last raised $100 million in a September 2021 funding round, achieving a valuation of $1.1 billion.
As Carousell continues to navigate market dynamics and expand its offerings, it aims to capture the significant growth potential in the recommerce market, positioning itself as a prominent player in Southeast Asia’s e-commerce landscape.