CARSOME Group, JACCS announces strategic partnership in CARSOME Capital to revolutionize auto financing

CARSOME Group has announced a strategic partnership with JACCS Co., Ltd. (Japan Consumer Credit Service), a global consumer finance company and a member of the Mitsubishi UFJ Financial Group. This collaboration, established through CARSOME Capital Sdn. Bhd., the financing arm of CARSOME, aims to revolutionise auto financing in Malaysia.

Under this agreement, JACCS will acquire a 49% stake in CARSOME Capital, while CARSOME Group will maintain a majority 51% stake. The partnership is designed to combine JACCS’ international expertise and financial capabilities with CARSOME Capital’s strong local presence. Together, they will introduce innovative financing solutions, particularly for underserved segments, while enhancing risk assessments, credit governance, and overall financial sustainability.

Eric Cheng, Co-Founder and CEO of CARSOME Group, expressed excitement about the partnership, stating, “We are honored to collaborate with JACCS as they enter Malaysia strategically through our partnership. By leveraging JACCS’ extensive expertise alongside CARSOME’s ecosystem, we aim to redefine mobility financing, empowering communities and driving economic growth across the region.”

JACCS President and Representative Director Ryo Murakami echoed Cheng’s sentiments, emphasizing the company’s confidence in the venture. “After assessing the automotive and financing landscape in Southeast Asia, we see strong growth potential in this region. CARSOME is an ideal partner to drive transformation, beginning in Malaysia and expanding to other Southeast Asian markets. Our investment in CARSOME Capital reflects our commitment to creating long-term value in automotive financing.”

Nicholas Wong, Managing Director of CARSOME Capital Malaysia, highlighted the partnership’s impact on unserved and underserved markets. “This collaboration enables us to introduce advanced capabilities and AI-driven credit assessments, expanding access to financing for both dealers purchasing wholesale inventory and end-customers who rely on our vehicles.”

JACCS, founded in Japan in 1954, is a well-established name in global consumer finance, offering credit card services, auto loans, and housing loans. As part of the Mitsubishi UFJ Financial Group, JACCS has a significant presence in ASEAN markets, including Indonesia, the Philippines, Vietnam, and Cambodia. With shareholders' equity of approximately ¥230.4 billion (around RM6.58 billion) as of March 31, 2024, JACCS collaborates with over 20 automotive brands worldwide.

Established in 2018, CARSOME Capital provides a comprehensive range of auto financing services, including retail financing for individual buyers, dealership floor stock financing, and automotive insurance solutions. Leveraging data analytics and machine learning, CARSOME Capital enhances risk assessments and credit evaluations, supporting underserved communities. Since its inception, it has disbursed over RM1 billion in financing, facilitating nearly 45,000 transactions for CARSOME’s dealers and customers. This strategic alliance is poised to reshape auto financing in Malaysia and beyond.