Indonesia’s Broom Secures US$25 M in Series A+ Funding Round 

Broom, an Indonesia-based automotive startup focused on the used car market, has raised US$25 million in a Series A+ funding round. The investment, led by Openspace Ventures, will accelerate the digital transformation of Indonesia’s traditional automotive sector. Other participants in the round included Quona Capital, AC Ventures, PKSHA Capital, and MUFG Innovation Partners. 

In addition to equity funding, Broom secured credit facilities from local financial players such as DBS Indonesia, Alami, Komunal, and Modalku (Funding Societies). These funds and support from high-net-worth individual investors will help accelerate Broom’s expansion and strengthen its strategic partnerships.

According to Pandu Adi Laras, CEO of Broom, the funding is crucial in addressing challenges faced by Indonesia’s automotive industry, such as outdated financing options and limited digital integration. The company aims to provide inclusive financing solutions for dealers, empowering them to adapt to the evolving market. Broom is focused on streamlining the sector by offering comprehensive services that enhance dealership operations and promote sustainable growth.

Broom’s flagship product, Buyback, which allows dealers to temporarily sell their vehicle stock to raise working capital, has seen impressive growth. In the first half of 2024, the disbursement from Buyback nearly doubled year-on-year, reaching Rp1.1 trillion (US$72.5 million). This has helped more than 7,000 small and medium-sized automotive dealers expand their businesses by improving their liquidity and operations.

The company’s newly launched Broom Leasing Channeling (BLC) service, introduced in late 2023, has also shown strong performance. In the first half of 2024, BLC recorded 2,300 transactions, generating over US$17 million in revenue and capturing 25% of the market share. This service provides dealers with more flexible financing options and has been a key driver of Broom’s success in the used car sector.

With the new funding, Broom aims to enhance its footprint throughout Indonesia, particularly in the western and eastern regions. The company will also work on forging strategic alliances with significant industry stakeholders. Additionally, Broom plans to partner with 23 multi-finance firms to optimize transaction processes via API integration, thereby improving efficiency for both dealers and customers.

In the second half of 2024, the company plans to expand its operations to Western and Eastern Indonesia, collaborating with 23 multi-finance companies to enhance transaction processes through API integration. Additionally, Broom will strengthen its organizational capabilities by retaining and recruiting top talent to drive further innovation and growth.

Pandu Adi Laras highlighted that despite challenges in the funding sector, the company’s ability to secure new capital shows its strong growth track. Broom’s financing solutions have changed the traditional automotive industry, delivering faster and more efficient services to dealers and customers, ensuring long-term success.

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