Australia’s largest car subscription platform, Karmo, has secured strategic backing from Eagers Automotive (ASX:APE) as the business enters its next phase of national growth and category expansion. The investment will accelerate Karmo’s existing growth trajectory, with the company already operating at scale and continuing to see rising demand from consumer, business and novated subscription customers.
Eagers Automotive will acquire a 17.5% stake in Karmo, giving the listed automotive group exposure to Australia’s growing car subscription category through an established specialist operator with proven scale and profitability. As part of the transaction, Karmo will acquire Simplr, a used car subscription business founded by Eagers in 2020.
Karmo reached $60 million ARR in June 2026, prior to the integration of Simplr, which is expected to contribute an additional approximately $4 million ARR. The business has grown nearly 11x over the past five years and approximately 5x over the past three years, reflecting increasing consumer and business demand for subscription-based vehicles as an alternative to traditional ownership and leasing.
Karmo forecasts the purchase of approximately 7,000+ new vehicles and 450 used vehicles in 2026, with the Simplr acquisition further expanding the company’s capability across both new and used vehicle subscriptions.
Karmo Co-Founder and CEO Nick Boucher said the investment marked a significant milestone for the business and broader subscription category.
Boucher said, “The investment from Eagers Automotive, along with the existing seed investment from Autoleague, is an exciting opportunity for us to accelerate the momentum already in the business and sector.
“Our 90+ staff have built a business with meaningful scale in a category that is continuing to mature across consumer, business and novated markets. Eagers’ investment gives us additional automotive infrastructure, fleet access and industry depth as we continue building the platform for flexible vehicle access nationally. We are all very proud of Karmo being one of the only subscription platforms in the world to have a sustainable business model that benefits the dealers, the OEM, Karmo and most of all the customer”
The announcement follows Karmo’s continued deep investment in technology for dealer operations. Designed to leverage Karmo’s proprietary systems and superior buying power, Karmo Connect is a world-first dealer subscription service that enables dealerships to sell vehicle subscriptions directly through their own existing finance departments.
The breakthrough platform allows dealerships, including Eagers Automotive’s extensive network, to focus exclusively on what they do best: selling cars and earning upfront commission. Meanwhile, Karmo performs all the heavy lifting, managing the ongoing operational support, asset risk, and long-term customer management required for a subscription service.
Eagers Automotive CEO Keith Thornton, said the investment reflects growing confidence in subscription-based vehicle access as part of the evolving automotive market.
Thornton said, “Karmo has built a strong, scalable business with clear market momentum. They have developed real operational capability in a growing category and we see clear strategic opportunity in supporting the next phase of their expansion.”
Tony Chong, Chairman of Karmo’s major shareholder Autoleague, expressed the company’s perspective on the recent development: “The journey of growth we have supported for Karmo has created immense value, and Autoleague takes great pride in the business it is today. Eagers Automotive’s strategic investment serves as a powerful testament to the Karmo team’s excellence, the platform’s robustness, and the substantial future potential available.”
Karmo was advised by EM Advisory, who supported the transaction process and strategic investment discussions.
The industry is talking about this game-changing partnership. Check out the full coverage and analysis across major publications here:
- Drive: Car subscription service Karmo gets investment from massive dealer group Eagers Automotive
- CFO Tech Australia: Eagers takes 17.5% stake in Karmo as deal adds Simplr
