AUSTRALIA has a new automotive public company and one of the very few catering exclusively for the used-vehicle market.

Carma Ltd, which listed on November 5, raised $100m through the issue of 25.9m shares. It will have 136.7m shares in total, giving the new listing a market capitalisation of $369m. The $2.70 par shares were trading at $2.40 on Tuesday.

L- R: Lachlan MacGregor, Carma CEO; Yosuke Hall, Carma CCO

Co-founder and CEO Lachlan MacGregor said in a statement that the debut on the Australian Securities Exchange (ASX) was a “milestone” that “marks the start of a new chapter accelerating our mission to become Australia’s number one destination for all things pre-owned cars.”

“Disrupting a $118b industry that’s been long overdue for a simpler, more trusted experience for buyers and sellers.”

He said that Carma was started – by COO Yosuke Hall and himself – in 2021 “because we, like so many others, had personally experienced the challenges associated with buying and selling pre-owned cars”.

“We knew that there had to be a better way, and today we’re delighted to invite the public to join us as we accelerate the transition of Australia’s automotive retail industry.”

In its prospectus, Carma Ltd chairman Owen Wilson said Carma was a digital platform that integrates used-car sourcing, inspection, reconditioning, pricing, online retail, wholesale auctions, financing and delivery to the customer.

He said he was attracted to the business because “it improves one of the least enjoyable consumer experiences – buying and selling used vehicles.”

“I believe Carma is uniquely positioned to lead the digital transformation of the Australian automotive retail industry.”

Carma was founded in Sydney in 2021 by Yosuke Hall and Lachlan MacGregor. Its headquarters are in Sydney and it employs more than 185 people; has sold more than 6000 retail cars; and is the exclusive preferred used-car retailer of the NRMA.

The company said in a statement that it sells used vehicles to retail and wholesale customers. It operates in the large Australian pre-owned automotive retail industry that is characterised by a fragmented network of more than 4000 used-car dealerships with the biggest dealership commanding less than a 2 per cent share of used cars. This industry also includes auction houses and classifieds.

Carma is loss making and is not forecast to reach profitability in the prospectus forecast for FY26 which reflects its stage of development as it continues to grow.

It is focused on expanding its proprietary sourcing platform Sell-to Carma.One of the centrepieces of the company is its 35,000 square metre St Peters inspection and reconditioning centre in Sydney that takes all vehicles through a process to ensure quality.

The founders said that it was one of the ways the used-car buying and selling process is made easy and “removes the traditional fears.”

“Due to the fragmentation in the industry, the onus of identifying whether a car is in good condition or a lemon has historically been on the consumer,” it said.

“The quality of Carma cars provides our customers with the peace of mind that they will be able to rely on their vehicle in a way that they haven’t been able to before.”