ONLINE classifieds operator Carousell remains well-funded by its investors, and an initial public offering (IPO) is not the only option to raise capital, said its chief executive Quek Siu Rui on Friday (Sep 22).

“We’re so well-capitalised now that it gives us the ability to stay focused on execution,” he said when asked about the company’s plans for an IPO.  

“When the time comes for us to think about capital raises, we will look at all options, IPOs being one of them. But there are also many other capital-raising options,” he added, noting that the company has the support of long-term investors.

Quek was speaking to reporters at the launch of Carousell’s new headquarters at Block 79 in Ayer Rajah Crescent. The company had previously started operations a short distance away at Block 71 in 2012, and later moved to Keppel Towers in Tanjong Pagar, followed by Rochester Park. 

Founded by Quek and two of his university friends, Carousell is one of Singapore’s most publicised tech unicorns. It was last valued at US$1.1 billion, while raising US$123.5 million between 2021 and August this year, according to data platform VentureCap Insights. Its major investors include Norway’s Telenor Group and South Korean Internet company Naver.

An IPO has been on the cards for Carousell, with the company previously said to be in talks to merge with a US-listed special purpose acquisition company L Catterton Asia Acquisition. But discussions reportedly ended amid macroeconomic uncertainty and valuation concerns. 

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Carousell is also unprofitable, which adds to the challenge of going public amid weak sentiment. Its revenue grew 66.9 per cent to US$82.5 million in 2022, regulatory filings show. But losses widened to US$63.1 million, from US$41.9 million the previous year.

That said, Quek expects losses to narrow this year. “While we continue to grow our revenue very healthily, we’re also actually seeing a very healthy decline in our losses this year,” he said at Friday’s office launch, declining to share a specific timeline for profitability. 

Carousell laid off 110 staff last December, or 10 per cent of its workforce, with Quek admitting then that he was “too optimistic about the pace of our impact versus our increase in investments”.

Its recent acquisitions include second-hand fashion retailer Refash and sneaker marketplace Ox Street. Carousell also teamed up with Temasek unit Heliconia to acquire control of Laku6, which uses artificial intelligence (AI) to inspect the condition of second-hand mobile phones.

Quek is now focused on further integrating these acquired units into the company. The new office, called Carousell Campus, includes inspection facilities for mobile phones, sneakers and luxury bags – segments in which the company hopes to grow its footprint.

Acknowledging the challenging economic climate, he said: “We remain cautiously optimistic, and we are also remaining very prudent in terms of how we invest and spend.”