Carousell (Down Round & Layoffs)
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Carousell is a Singapore-based recommerce group founded in May 2012 by Siu Rui Quek, Marcus Tan and Lucas Ngoo, starting as a consumer-to-consumer classifieds app for preloved goods. Operating across Singapore, Malaysia, Indonesia, the Philippines, Taiwan, Hong Kong, Australia and other markets, it grew into one of Southeast Asia's largest managed marketplaces — including Vietnam's Chotot and Malaysia's Mudah — expanding through acquisitions of sneaker marketplace Ox Street (2021), fashion reseller Refash and electronics recommerce platform Laku6 (2022). It raised a $100 million round led by STIC Investments in September 2021, reaching unicorn status at a $1.1 billion valuation. In December 2022 it cut 110 roles (10% of group headcount) amid a worsening macro environment; co-founder Lucas Ngoo stepped down from day-to-day operations in early 2025.
02 / Carousell (Down Round & Layoffs) FAILURE REASONS
Failure reasons
The setback was driven by the CEO's own admissions of strategic misjudgment. First, management was 'too optimistic' about the pace of post-COVID recovery: emerging from 2021 lockdowns, the company doubled down on recruitment and new initiatives to reignite growth in core classifieds. Second, expenses and hiring grew faster than returns — 'we were quick to grow our expenses and hire, but the returns took longer than expected.' Third, the team grew too quickly, hurting decision-making clarity and adding coordination overhead. Finally, worsening macro conditions — high inflation, geopolitical risks, supply-chain disruption and a looming 2023 slowdown — compounded the strain, with 2021 revenue growth of 21.8% far below the circa 300% seen in 2019–2020.
03 / EVENT HISTORY
Events in the structured record
- Founded
Founded in May 2012 in Singapore by Siu Rui Quek, Marcus Tan and Lucas Ngoo as a C2C e-commerce platform for preloved goods.
- Unicorn round
Raised $100 million led by STIC Investments, reaching a $1.1 billion valuation; acquired sneaker marketplace Ox Street.
- Acquisitions and layoffs
Acquired Refash and Laku6 to deepen recommerce; in December cut 110 roles (10% of group headcount), moved to a cheaper office, and the co-founders and group leadership took voluntary pay cuts; Quek took responsibility, citing over-optimism and over-hiring.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
On December 1, 2022, co-founder and CEO Quek Siu Rui announced in a blog post that Carousell Group would reduce about 110 roles (10% of group headcount), affecting only some business units, and took personal responsibility for the decisions that led there.
- 02
The company offered impacted employees at least three months of salary (one month per year of service), extended medical benefits and insurance coverage through June 2023, payout of all remaining time-off balances, career counseling and job-search support, and allowed them to keep their office laptop and LinkedIn Learning membership until June 2023.
- 03
Leadership cut costs structurally: moving to an office with significantly lower rent and the co-founders and group leadership taking voluntary pay cuts.
- 04
Carousell continued operating; in early 2025 co-founder Lucas Ngoo stepped back from day-to-day management to take a break, remaining a co-founder, board director and advisor.