Carousell, the online classifieds platform, has achieved a significant milestone by turning earnings before interest, taxes, depreciation, and amortization (Ebitda)-positive in the fiscal year 2025. This achievement is attributed to a substantial increase in revenue, which grew by 18% to US$141 million, up from US$119.3 million in the previous fiscal year. Notably, this revenue is nearly triple that of fiscal year 2021.
A key driver behind this growth is Carousell's recommerce segment, which saw a remarkable 40% increase in fiscal year 2025. This segment now accounts for 45% of the company's total revenue. Recommerce involves the buying and selling of pre-owned goods, and Carousell's expansion into this market has been instrumental in its financial turnaround.
The company has extended its recommerce operations to four markets: Singapore, Hong Kong, Malaysia, and Indonesia. In Singapore and Malaysia, Carousell offers luxury recommerce through its LuxLexicon platform. Additionally, the company provides fashion recommerce in Singapore, Hong Kong, and Malaysia, and electronics recommerce in Singapore, Malaysia, and Indonesia.
Quek Siu Rui, Carousell's co-founder and CEO, emphasized the company's transformation, stating, "Carousell Group today is a fundamentally transformed business from the marketplace we started as. We’ve evolved from a classifieds marketplace into a multi-category recommerce platform, with multiple revenue streams and a growing transaction business."
Looking ahead, Carousell has outlined three priorities for fiscal year 2026:
1. **Scaling Recommerce**: Expanding recommerce operations across its markets to meet growing consumer adoption.
2. **Operational Efficiency**: Maintaining disciplined execution to sustain growth and improve margins.
3. **Artificial Intelligence Integration**: Deepening the use of AI within the organization and platform to enhance user experience and operational efficiency.
Regarding potential listing on the Singapore Exchange, Leung Shing Tai, Carousell's Chief Strategy Officer, stated that the company's focus remains on execution. He noted that Carousell is in a stronger position than a few years ago, with a diversified business and a strong balance sheet. Leung added, "We’re always open to conversations with investors and partners who share our long-term vision."
In summary, Carousell's strategic shift towards recommerce has been pivotal in its financial success, positioning the company for continued growth and innovation in the evolving e-commerce landscape.