Secondhand Unicorn Carousell Boosts Growth With Stripe

Secondhand goods marketplace Carousell got a leg up in rapid growth after partnering with online payment processing firm Stripe.

Launched in Singapore in 2012, Carousell is among the region’s sporadic unicorns and is one of the fastest growing digital marketplaces in Southeast Asia, according to a Stripe press release Wednesday (May 11).

The company has tens of millions of monthly active users in Singapore, Malaysia, Hong Kong, Philippines, Taiwan, Indonesia, Myanmar and Vietnam. The release said that by partnering with Stripe, Carousell has helped build trust between users while also booting fraudsters peddling fake merchandise.

“Carousell Protection is a great example of the innovation we offer our sellers and buyers to give them peace of mind as they transact easily and safely in our marketplace,” said Lucas Ngoo, co-founder of Carousell. “There’s still more to do and we want to work with partners like Stripe to continuously improve the experience on Carousell in everything from products to payments.”

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Co-founded by CEO Siu Rui Quek, Marcus Tan and Ngoo during a hackathon in Singapore, Carousell was launched as a one-stop mobile marketplace for secondhand items that would “inspire every person in the world to start selling,” according to the release.

By 2018, the company rolled out an in-app payment feature called Carousell Protection in order to develop a safer environment while also setting the stage for scaling the company. Carousell Protection, based on Stripe products, withholds payments to sellers until buyers have received the items.

Carousell used Stripe Connect to accept payments and control the flow of funds, and Stripe Radar to weed out shady sellers and block fraudulent payments.

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The marketplace also used Stripe’s no-code integration to introduce its eWallet GrabPay in October 2020. GrabPay acceptance led to a 20% boost in Carousell sales in Malaysia during the pandemic.

“We believe we can create an inversion in commerce by 2030, where first-hand eCommerce will supplement re-commerce as consumers buy something new only when necessary, or after they have sold something,” Ngoo said. “It will ultimately be good for society, and for the planet, when second-hand becomes the first choice.”