Pre-owned car market Carma raises $30m in convertible note

The news: Australian online used car retailer Carma has secured a $30 million convertible note funding round led by Regal Funds Management and Tiger Global, with participation from existing investors General Catalyst and Five V. The company will use the funds to expand its vehicle inventory and grow its car-buying service.

The numbers: The $30 million raise follows Carma's launch in 2021, when it secured Australia's largest seed funding round at the time. Since then, the company has served more than 5,000 customers through its digital platform.

The context: Founded in 2021, Carma operates as a fully digital pre-owned car destination, offering integrated financing, free home delivery, and a seven-day return policy. The company employs over 50 in-house experts who manage vehicle inspections and reconditioning processes. The latest funding comes as similar digital-first automotive retailers in markets like the United States have scaled to generate billions in annual revenue.

What they said: "This latest raise is a huge endorsement of Carma's vision to transform the used car industry in Australia," said Lachlan MacGregor, co-founder and chief executive officer of Carma. "For too long, buying a used car has been frustrating and uncertain."