FinTech: Indonesian Fintech Broom, Which Finances Auto Dealers, Nabs US$10M
Because of the resale car boom in Indonesia, gross merchandise value at Broom has increased 16x year-on-year.
Indonesian automotive SME solutions startup Broom has secured $10m in a pre-Series A funding round led by Openspace Ventures, with participation from MUFG Innovation Partners, BRI Ventures and existing investors AC Ventures and Quona Capital.
The Jakarta-based firm will use the funds to expand its product offerings and further accelerate inventory turnover for dealers. Established in 2021, Broom provides a complete, all-encompassing financial solution for auto dealer inventories, including its flagship service Buyback, which provides dealers with short-term working capital through a temporary car sale service with a repurchasing option. (e27)
Broom’s digital showroom management platform also offers greater transparency for customers.
The company says it has processed more than $300m in inventory through Buyback in the past year and over 5,000 used car dealers have enlisted on its platform. Moreover, gross merchandise value has vaulted 16-fold year-on-year.
Broom aims to double its credit facility from external lenders and is planning to develop an intelligence model for assessing car quality to more effectively appraise the fair value of pre-owned cars.
Indonesia’s used-car market is up to six times that of new car sales. This has created a massive $65bn industry, while the opportunities provided by this market have remained largely unexploited.
Broom plans to tap into this market by offering solutions to the country’s 50,000+ dealerships, that conduct at least 85% of used-car transactions.
Related Story: Impel, A Digital Platform For Car Buyers, Nabs $104M
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