Broom, an Indonesia-based auto-financing startup that helps used car dealers work more efficiently by applying the asset-backed lending model to their businesses said it has closed a $10 million pre-Series A financing round led by Openspace Ventures.
Founded in 2021, the Jarkata-based startup offers an end-to-end financial solution for auto dealers and has since established six branches across Greater Jakarta, Surabaya, and Yogyakarta. Its flagship service Buy Back provides dealers with short time working capital through a temporary car sale service with repurchasing option.
The company claims it has transacted over $3 million worth of inventory through its Buyback scheme and has onboarded over 5000 used car dealers. Broom plans to diversify its product with fresh funding and accelerate inventory turnover for both startups and dealers. It also aims to double its credit facility for external lenders, building on the $12 million in debt facilities from DBS Indonesia and BRi in 2022.
This round follows a $3 million pre-seed funding led by AC Ventures in February last year. It also secured debt financing later in Nov 2022, bringing its total round of funding to date to $17 million. Other investors, including MUFG Innovation Partner, BRI Ventures and its previous backers like AC Venture and Quona Capital, joined the round.