Published on 17 Nov 2020

SPH vs sgCarMart - Winning In The Face Of A Giant Competitor

Chin Chee Kai

sgCarMart (SGCM) as a young online start-up had received multiple awards and congregated visiting traffic in the range of millions per month. Most importantly, at the time of the offer, it was enjoying stable recurring revenue close to SGD 5.5 million with a healthy annual profit of SGD 2.3 million. SGCM was also the market leader in online car advertisements in Singapore at that time. With the achievements SGCM had garnered, it would be highly possible to explore other options beyond a buy-out.

The company could enter into partnership agreements, or even undertake an Initial Public Offering (IPO) that could be worth much more than the SGD 60 million offered by SPH. With an upper hand in the market, would it be wise for the founders to sell SGCM?

Read the report here.