Australian car subscription pioneer Carbar has announced a landmark merger with its UAE-based competitor, Carasti, creating a combined entity valued at A$74 million. This strategic consolidation aims to establish a dominant global platform in the rapidly growing vehicle subscription market. The newly formed company is concurrently seeking to raise A$10 million in fresh capital to accelerate its international expansion plans.
A New Global Player
The merger unites Carbar's Australian market leadership with Carasti's strong presence across the UAE, Saudi Arabia, Thailand, and Singapore. This cross-regional integration creates a formidable competitor in the global mobility-as-a-service sector. The combined operational footprint provides a solid foundation for future expansion into new and emerging markets worldwide.
Corporate and Shareholder Structure
Under the agreement, Carbar shareholders will hold a 55% stake in the new entity, while Carasti shareholders will own the remaining 45%. A new parent company will be established with its corporate headquarters strategically relocated to Singapore to oversee global operations. This structure provides a balanced framework for integrating the two companies and aligning their long-term strategic goals.
Securing Growth Capital
To finance the integration and drive its growth strategy, the company has initiated a $10 million capital raise managed by Australia's Alpine Capital. The offering consists of 7.04 million new shares priced at $1.42 each for prospective investors. This infusion of funds is critical for scaling the platform to meet increasing consumer demand and enhancing technological capabilities.
The 'Netflix for Cars' Model
The combined company champions a flexible, monthly subscription model, aiming to make vehicle access as simple as a streaming service. This approach provides a modern alternative to the rigidity and high costs associated with traditional car ownership and long-term leasing. It is designed to appeal to consumers seeking convenience and freedom from the long-term financial commitments associated with vehicles.
Expanded Fleet and Service
A key outcome of the merger is the significant expansion of the company's vehicle fleet, which will double from 1,500 to over 3,000 cars. This increased capacity will allow the service to reach more customers and offer a wider variety of vehicle choices. The larger scale is expected to improve operational efficiencies and enhance the overall value proposition for subscribers across all markets.
Ambitious Financial Horizon
The leadership team has set a clear path for the future, with plans to explore an Initial Public Offering or a trade sale within two to three years. Financial forecasts for the unified entity are optimistic, projecting revenues to reach as high as $62 million by the 2028 fiscal year. This represents a substantial 56% increase over the combined revenue projections for 2026, signaling strong confidence.
This merger between Carbar and Carasti marks a pivotal moment for the car subscription industry, creating a powerful new entity with a global footprint. The combination of a larger fleet, a new Singaporean headquarters, and a $10 million funding round positions the company for accelerated expansion. The move solidifies its ambition to reshape car ownership on an international scale and prepares it for a potential public market debut.