Daily Brief Singapore: Carousell and more

Executive Summary

• Omnichannel Recommerce Transition: Carousell has successfully evolved from an asset-light classifieds application into a managed omnichannel recommerce platform across Greater Southeast Asia. This strategic shift is anchored by the rollout of 29 physical stores and integrated authentication services, which enabled the group to achieve positive full-year EBITDA in the FY25 financial year.
• High-Margin Transaction Growth: The primary growth driver is the rapid expansion of the managed recommerce division, which grew 40.0% year-on-year to account for 45.0% of the US$140.6m total revenue in FY25. By internalising the transaction flow through proprietary payment gateways and physical inspection infrastructure, the company captures more value per transaction than traditional peer-to-peer listings, albeit at a lower percentage margin than its classifieds advertising base.
• Regulatory Fraud Compliance Burden: The platform faces intense regulatory scrutiny from regional authorities regarding elevated peer-to-peer scam activity across its digital classifieds ecosystem. Compliance frameworks such as Singapore’s E-Commerce Code, under which Carousell has piloted enhanced identity verification for high-risk sellers, add operational overhead, and regulators have warned that a broader mandate covering all sellers would introduce onboarding friction that could threaten listing liquidity.