Australian car subscription platform Carbar is merging with its UAE-based rival Carasti to form a combined entity valued at $74 million before a planned capital raise.
The two companies are seeking $10 million in fresh investment to fund their expansion into the Middle East and Southeast Asia markets.
The deal marks a strategic pivot for Carbar, which has historically focused on the Australian domestic market, to leverage Carasti’s regional footprint.
By combining operations, the merged entity aims to scale its subscription model across high-growth emerging markets where vehicle ownership trends are shifting toward flexible access models.
This move follows a broader trend of consolidation in the automotive technology sector, as seen with Carro’s recent acquisition of Australian used car platform CarPlace.
Investors are watching to see if the subscription model can achieve similar scale and profitability in international markets compared to the traditional used car sales platforms.