Broom sweeps up US$3m funding for Indonesian auto-financing business

INDONESIAN startup Broom, which provides financial solutions for auto dealer inventories, has raised US$3 million in a pre-seed round led by venture firm AC Ventures, it announced on Friday (Feb 25).

Other investors in the round include Quona Capital and the founders of Indonesian tech unicorns Kopi Kenangan and Lummo. Broom will use the funding to roll out new products and services, expand its presence in major cities in Indonesia and double its team by the end of 2022.

Founded in 2021, the startup operates a platform that provides auto dealers with operational enhancements, online sales enablers and access to financing. It offers short-term loan facilities by partnering with financial institutions. Broom said that it has some 2,000 used car dealerships on board in the Jabodetabek area.

Its co-founder and chief executive Pandu Adi Laras was previously chief operating officer of GoFleet, a joint venture by Gojek and Astra, and prior to that worked for Uber. Another co-founder, Pungky Wibawa, is the owner of one of the largest BMW dealerships in Indonesia.

Adrian Li, founder and managing partner of AC Ventures, said: "As digital solutions penetrate every industry, embedded finance represents an enormous opportunity. The used car industry sees US$14 billion of annual transaction value, and MSME (micro, small and medium enterprises) car dealerships represent over 80 per cent with little to no access to affordable financing."