Eagers Automotive takes 17.5% strategic stake in car subscription platform Karmo

What's the deal? KarmoDealroom has a profile for this one. Try Dealroom →, the Brisbane-based car subscription platform, has secured a strategic investment from Eagers AutomotiveDealroom has a profile for this one. Try Dealroom → (ASX: APE), Australia's largest listed automotive dealer group, which is taking a 17.5% stake. The financial terms were not disclosed, and the deal is expected to complete on 1 July 2026.

As part of the transaction, Karmo will acquire Simplr, a used car subscription business Eagers founded in 2020, adding about A$4 million in annualised recurring revenue (ARR) to the platform. The used-car book complements Karmo's core new-vehicle offering, giving it exposure across both segments.

Why now? Karmo passed A$60 million ARR in June 2026, ahead of the Simplr integration. Founded in 2019 by Nick BoucherDealroom has a profile for this one. Try Dealroom → and Sam Zammit, it calls itself Australia's largest new car subscription platform, with more than 3,000 vehicles under active subscription and operations across five Australian cities and Sri Lanka. The company forecasts buying more than 7,000 new vehicles and 450 used vehicles in 2026, and previously acquired rival Motopool in late 2024.

The signal: Eagers, a corporate investor making a direct equity play rather than a financial bet, is backing a breakout-stage company at a moment when subscription is maturing into a credible alternative to ownership — a sign that Australia's largest dealer group sees rolling subscriptions as complementary to, not competitive with, its core business. The investment sits alongside existing backing from major shareholder AutoleagueDealroom has a profile for this one. Try Dealroom →.

Read more: Business News Australia