Indonesian auto financing firm bags $10m to reorganize used-car selling

Broom co-founder & CFO Andreas Sutanto,(left), co-founder & CEO Pandu Adi Laras (middle), and COO Claussen Sindhuwinata.

Rising interest rates may have put some pressure on the automotive financing industry. But Indonesia-based Broom notes that these higher prices – along with other factors such as the current market slowdown – have also encouraged people to own secondhand vehicles instead of new ones.

While Indonesia contributes around 30% of new car sales in ASEAN, used-car transactions in the country are 6x bigger than sales of new cars. This has led to a local used-car industry worth US$65 billion, according to Broom.

Recently, the company raised US$10 million in a pre-series A funding round led by Openspace. The fundraise also saw participation from MUFG Innovation Partners, BRI Ventures, AC Ventures, and Quona Capital.

With the new round, Broom has raised a total of US$13 million in funding to date. On top of that, it also received a US$12 million credit facility from DBS Indonesia and BRI in 2022, CEO and co-founder Pandu Adi Laras told Tech in Asia.

Founded in 2021, Broom provides used-car dealers in Indonesia with access to short-term working capital through its Buyback service. This lets dealers sell their inventory to get capital, which they can then repurchase later on.

Broom also offers a digital showroom management platform to help dealers boost sales.

Over the past year, Broom has transacted over US$300 million worth of inventory through Buyback, onboarded more than 5,000 used car dealers, opened six branches, and grown its gross merchandise value 16x.

The fresh funds will help Broom diversify its product offerings and accelerate inventory turnover. The company also plans to double its credit facility so that it can serve more dealers and handle a higher transaction volume.

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