Carousell says on track to profitability, set to reduce losses in 2023

on Sep26
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We'll be 'healthily reducing' our losses this year, Carousell CEO says

Secondhand goods marketplace Carousell expects to “healthily” reduce its losses this year, putting it on track to profitability, the firm’s CEO told CNBC.

“This year, we continue to expect revenue to grow healthily. And I think in a very promising sign, we actually are going to be healthily reducing our losses this year as well,” said Quek Siu Rui, co-founder and CEO of Carousell said Monday, adding that the firm is “on track” with its plan to profitability.

In 2022, the Singapore-based company posted $82.5 million in revenue, a 67% jump from the year before, according to regulatory filings. However, losses in 2022 widened 57% year-on-year with higher expenses.

The Singapore-based firm was founded in 2012 as an online classified advertisements marketplace where users can list and sell their used goods for money.

“We acknowledge that the recommerce opportunity is a really big one. We are actually investing to grow these different initiatives and strategies,” Quek said on CNBC’s “Squawk Box Asia,” referring to the sale of previously owned goods, whether used or brand new.

Research shows that the global circular economy — which seeks to reduce waste and promote recycling and reusing — could generate $4.5 trillion in additional economic output by 2030.

Southeast Asia expansion

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Last year, Carousell acquired Singapore-based second-hand fashion retailer Refash and Indonesian electronics recommerce platform Laku6 to bolster its expansion into the fashion and electronics markets.

“We feel confident that we can actually continue to generate healthy growth towards this very meaningful direction of recommerce growth,” Quek told CNBC.

“[With the] support of our investors, we are actually very well capitalized to execute on these strategies. So we feel very confident about our capital position.”

Cost cutting

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