Carsome cracked the code to rapid scaling across ASEAN, here’s what other startups can learn

[Written in partnership with Malaysia Digital Economy Corporation (MDEC), but the editorial team had full control over the content.]

“In the early days, we did not set out to expand quickly. Our focus was simply on solving a real problem that many people faced when buying or selling a used car,” Eric Cheng, co-founder and CEO of Carsome Group shared.

Fast forward 10 years, the startup is now Malaysia’s first unicorn, with presence in three major Southeast Asian countries: Singapore, Indonesia, and Thailand.

But expanding beyond your home market is rarely straightforward. From navigating local regulations to understanding diverse customer behaviors, the journey is filled with plenty of challenges. 

So here are 5 pieces of advice about scaling quickly across ASEAN, based on Carsome’s own experience.

1. If it doesn’t work at home, don’t take it abroad

Before considering regional expansion, Eric stressed the importance of having absolute clarity on your business fundamentals. This includes a strong operating model, disciplined execution, and healthy unit economics. 

“Scale only amplifies what already exists, so inefficiencies at home will only grow when replicated across markets.”

For Carsome, validating their business model in a complex and competitive environment allowed them to stress-test their operations, manage cost structure, and deliver consistent quality at scale.

Once those business fundamentals were firmly in place, expanding abroad became a strategic extension of what already worked, rather than an experiment in unfamiliar territory.

2. Be very selective when choosing where to expand

Be it here or abroad, businesses have to study the local market in depth. Look at customer behaviors, purchasing habits, digital readiness, market size, and specific pain points.

Eric credited Malaysia’s geographical position with giving Carsome a strong foundation to refine their business model. 

“The region is deeply interconnected, with shared trade flows, similar consumer trends, and a growing push for digital adoption across Southeast Asia. Expanding into neighbouring countries such as Singapore, Indonesia, and Thailand allowed us to build on these shared strengths.”

Of the three, Indonesia stood out for its scale and resilience. Despite being Southeast Asia’s largest automotive market, it remained fragmented and underserved. Carsome saw an opportunity to introduce structure, trust, and technology into a market ready for change.

“Establishing early presence there helped us to learn how to balance local adaptation with regional consistency, lessons that continue to guide us today.”

3. Strike a balance between centralising and localising

It’s often said that localising your business is crucial to success and rightly so. While that’s true, it also brings up another question—what do you centralise then?

For Carsome, they centralise areas that define who they are, while localising how they operate. 

Technology, brand positioning, and overall strategy are managed centrally in Malaysia because they represent Carsome’s identity, vision, and mission. The same inspection standards and brand promise apply everywhere, so customers can trust that a Carsome-certified car means the same thing regardless of location.

But the way they deliver that promise is localised. Operations, language, marketing, pricing and partnerships are adapted to reflect each market’s culture and business environment. 

“This combination of shared direction and local ownership has been key in allowing us to move quickly when entering new markets, while making sure decisions remain grounded in local insight and accountability.”

This principle also extends to team-building, where clearly defined regional and local roles help maintain speed without sacrificing relevance.

4. Expansion is about relevance, not geography

In Carsome’s early years, they experimented with several markets including Australia. At the time, the brand was growing quickly but soon realised how fundamentally different the Australian market is compared to Southeast Asia.

“The car ownership patterns, consumer expectations, and regulatory systems were not the same, and our Southeast Asian playbook did not fit as well as we had hoped,” Eric shared. “We were stretched too thin trying to apply the same model across markets that required very different solutions.”

Recognising this, the team made a deliberate decision to exit and refocus their resources where Carsome’s expertise had the most impact—Southeast Asia. 

On that note, Eric also shared that “Being local means delivering standards in a way that makes sense to the market.” 

For example, in Thailand, Carsome saw strong demand for young professionals living on the outskirts of cities who needed affordable cars for daily commute. Yet, in Indonesia, buyers tended to prioritise short-term value and affordability. 

Understanding these nuances helped Carsome tailor their services, business verticals, pricing, and customer experiences to match each country’s expectations. 

5. Your network is your launchpad

Beyond building strong local teams, partnering with local players is just as important, so much so that Eric cited it as a central factor to Carsome’s growth.

When the company first launched, their focus on wholesale led to establishing a strong network with dealers. “They were our first partners. Earning their trust gave us market insight, supply consistency, and credibility,” the co-founder and CEO shared.

Over time, Carsome’s partnerships expanded to various financial institutions for flexible car financing, Petronas AutoExpert for after-sales services, and national agencies like MDEC to support talent development, innovation, and digital adoption.

When assessing potential partners, Carsome prioritises three areas: 

1. Capability and complementarity
2. Strategic alignment (in terms of long-term vision)
3. Market credibility

“Every collaboration must strengthen the ecosystem and create measurable value for customers and partners alike.”

A blueprint for regional growth

Carsome’s journey from a Malaysian startup to a regional industry leader reflects how the growing maturity of Malaysia’s digital economy. 

By scaling rapidly across multiple ASEAN markets while maintaining operational consistency, the company has demonstrated that local startups can compete confidently on a global stage.

Their journey also highlights the value of a supportive ecosystem. Programmes that connect local innovators to regional opportunities, such as MDEC’s Malaysia Digital status, enable homegrown startups to leverage strong talent pipelines, infrastructure, and market access platforms to expand beyond borders. 

“Expansion for us has always been about bringing what worked at home to new markets, learning along the way, and improving it together with our local teams. MDEC has supported that growth journey with platforms including their market access programme DEX CONNEX that helped us connect with regional partners and government agencies,” –  Eric Cheng, CARSOME Group Co-founder and CEO

• Learn more about Carsome here.
• Learn more about Malaysia Digital Economy Corporation (MDEC) here.
• Read other articles we’ve written about Malaysian businesses here.

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Featured image credit: Carsome