Buying a car should be exciting. But for many Malaysians, the experience of buying a used car can feel like quite the opposite: endless browsing, price negotiations, uncertainty over a vehicle’s condition and the lingering question: Can I really trust this deal?
In 2015, two Malaysian entrepreneurs founded Carsome with a simple ambition: use technology to make buying and selling used cars more transparent, convenient, and trustworthy. What began with US$350,000 in seed funding would eventually grow into Malaysia’s first technology unicorn.
But behind the billion-dollar valuation is a more interesting story, one about recognising an everyday problem, being willing to rethink the original business model and having the courage to build something that did not yet exist.
Meet the Founders: From Advertising to Automotive Disruption
Interestingly, neither Eric Cheng nor Teoh Jiun Ee began their careers in the automotive industry.
The pair met while working in digital media and advertising. They discussed various business ideas before stumbling upon a problem much closer to home. Jiun Ee’s sister had struggled with the traditional process of buying a car, which meant visiting different dealerships, speaking to different salespeople and negotiating to find the right deal.
That experience made the pair realise something important: cars might be technologically advanced, but the process of buying and selling them was still surprisingly old-fashioned.
Carsome initially started as a car comparison website. But as customers began asking questions about selling their vehicles, the founders noticed another opportunity.
Instead of simply providing information, why not solve the bigger problem?
That thinking led Carsome into the used-car selling business, where it introduced online valuations, inspections and a virtual auction system connecting sellers with dealers.
It sounds straightforward today. At the time, however, it meant challenging an industry built largely around traditional relationships and face-to-face transactions. And the journey was far from smooth.
One early business model had to be abandoned after a major car brand discouraged its dealers from working with Carsome. Rather than treating the setback as a dead end, the founders went back to the drawing board and rethought the business. That willingness to pivot would become one of the defining characteristics of their leadership.
When a Problem Becomes a Business Opportunity
Carsome’s bigger breakthrough came from understanding that the problem was not simply how to sell a car. It was trust. Used-car buyers often worry about hidden problems. Sellers want a fair price. Dealers need reliable vehicles and efficient ways to source them. Carsome began building technology and processes around these different needs.
In 2020, the company launched its consumer-facing buying business, introducing what it called “The New Way of Buying Cars”, a more digital and transparent process that allowed customers to browse vehicles online, view detailed information, book test drives and access quality-assured cars.
The philosophy was simple: if technology could make the transaction easier, it could also make the experience more trustworthy. That mindset helped Carsome move beyond being merely a platform connecting buyers and sellers. It began building an integrated automotive ecosystem covering areas such as inspections, ownership transfers, financing, retail and after-sales services. The numbers followed.
Carsome expanded across Southeast Asia and, in 2021, achieved a valuation of US$1.3 billion following a US$170 million Series D2 equity round, making it Malaysia’s first technology unicorn. The following year, the company announced another US$290 million financing round, taking its valuation to approximately US$1.7 billion. But perhaps the more interesting lesson is not the valuation. It is the thinking behind it.
The Leadership Lesson: Think Big, Start Small
Carsome’s story demonstrates that disruption does not always begin with a revolutionary invention. Sometimes, it begins with a very ordinary question: “Why is this so difficult?”
Cheng and Jiun Ee did not set out to reinvent the automobile. They looked at the experience surrounding it and noticed where consumers were struggling. That is an important leadership lesson. Great entrepreneurs are not necessarily the people who have all the answers from day one. They are often the ones willing to listen, experiment, fail, adapt and keep asking better questions.
Carsome itself embodies this philosophy. Its stated values include “Think big, start small”, alongside principles such as putting customers first, continuous improvement and doing more with less.
There is also something refreshing about the founders’ journey: they did not come from the industry they eventually disrupted. They came from outside it. And perhaps that was their advantage.
Without being tied to the traditional way of doing things, they could look at the used-car market with fresh eyes and ask what consumers actually wanted, trust, transparency, convenience and choice.
Today, Carsome operates across Malaysia, Indonesia, Thailand and Singapore, with more than 80 centres across over 50 cities, according to the company’s current information.
The road from a simple comparison website to a regional automotive ecosystem was certainly not a straight one. But that may be the point. For Cheng and Jiun Ee, one frustrating car-buying experience became the spark. The rest was built one problem, one pivot and one bold idea at a time.
Buying a car was once all about showrooms, paperwork, and negotiations. Carsome helped bring a different approach to the experience, showing how technology and a clear understanding of consumer needs can create new possibilities. The Leadership Excellence Award (LEA) recognises leaders who see opportunities where others see obstacles and dare to build differently. Nominate a leader whose vision is changing the game.
