Broom founders
Broom, an online financing company for small-scale auto dealers in Indonesia, has attracted US$3 million in pre-seed funding.
AC Ventures led this round, joined by Quona Capital and several angel investors, including Kopi Kenangan’s and Lummo’s co-founders.
Broom will use the money to introduce new products and services, expand its presence in major cities in Indonesia, and double the team by the end of 2022.
Established in 2021, Broom provides an end-to-end financial solution for auto dealer inventories. Its platform allows auto-SMEs to digitalise their business processes, such as managing inventories, accessing financing, and managing their sell-side tools.
“Broom aims to be the first choice for used car dealers to develop their business by providing various products and services,” said Pandu Adi Laras, Broom Co-Founder and CEO.
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Auto dealers generally work very traditionally, with most stock counts being done on a whiteboard. While trying to go online, they find it challenging to sell on platforms and find the right buyers within their locations. Financing is generally hard. Some go to loan sharks for 6-week loans paying significant interest.
Broom addresses this problem by providing dealers with three solutions through its platform, starting from operational enhancements, online sales enablers, and access to financing.
The company offers a short-term loan facility with a competitive interest rate; it has partnered with financial institutions to provide low-cost financing. This allows customers to access loan facilities by utilising their existing inventory as collateral with a fast approval process.
Currently, Broom has over 2,000 used car dealerships in the Jabodetabek area.
“As digital solutions penetrate every industry, embedded finance represents an enormous opportunity. The used car industry sees US$14 billion of annual transactions value, and MSME car dealerships represent over 80 per cent with little to no access to affordable financing. Broom seeks to empower these dealerships with financial products and enablers to help them scale,” added Adrian Li, Founder and Managing Partner at AC Ventures.
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