Broom Raises Rp380 Billion in Funding Led by Openspace Ventures

Broom, a startup that operates in the field of marketplace used cars in Indonesia, has successfully secured Series A+ funding of $25 million or equivalent to Rp380 billion. This fund will be used to accelerate the digitalization of the traditional automotive sector in Indonesia, one of the largest industries in Southeast Asia.

The funding was led by Openspace, with participation from AC Ventures, Quona Capital, MUFG Innovation Partners, and PKSHA Capital.

Previously Broom announced pre-series A funding in March 2023 then worth $10 million. Based on data reported to regulators, AC Ventures and Quona Capital (both previous investors), as well as MUFG Innovation Partners and BRI Ventures participated in this round. In its initial funding, Broom has also pocketed funds worth $3 led by AC Ventures, as well as participation from Quona Capital and several angel investors, including the founders of Kopi Kenangan and Lummo.

This funding comes after Broom recorded significant business growth throughout last year. In the first half of 2024, Broom's core and new business lines showed tremendous growth. With this investment, Broom plans to expand the market, continue strategic partnerships, and build a solid team to drive long-term success.

"We are pleased to continue supporting Broom in the process of digitizing the traditional automotive sector, with a focus on providing better financing solutions for dealers, who are the backbone of this industry," said Openspace Executive Director Ayu Tanoesoedibjo.

Automotive sector transformation mission

Broom Co-Founder & CEO Pandu Adi Laras emphasized that this funding is proof of investor confidence in the company's mission to transforming the automotive industry. He said challenges such as outdated financing options and a lack of digital integration have hampered the growth of dealers and consumers.

"By providing comprehensive solutions, including more innovative and inclusive financing for dealers across Indonesia, we hope to transform the industry and drive sustainable growth," said Pandu.

Broom's growth is evident from significant financial achievements. In the first half of 2024, Broom recorded an increase in fund distribution from products buy back—a solution for car dealers to temporarily sell their vehicle stock to obtain working capital—increased by 144,9 percent compared to the same period the previous year, reaching IDR1,1 trillion (US$72,5 million).

More than 7.000 MSME automotive dealers have been helped through this product. In addition, the new Broom Leasing Channeling (BLC) service, launched in the fourth quarter of 2023, has generated 2.300 transactions with revenues of more than US$17 million and achieved a market share of 25 percent in the first half of 2024.

Strategic steps amid funding challenges

Amid challenging funding conditions, with Asian data showing funding at its lowest level since 2015, Broom’s success in securing this funding further underlines the company’s position on a strong growth path.

With the total investment received to date, Broom is in a strong position to execute its growth plans. In the second half of 2024, Broom will focus on expanding operations to western and eastern Indonesia, working with 23 companies finance to simplify the transaction process through API integration, as well as strengthen organizational capabilities by retaining and recruiting the best talent.

“Broom’s innovative approach to automotive financing is not only transforming the conventional industry, but also increasing value for our partners and customers, with faster, easier and more efficient solutions,” concluded Pandu.

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Disclosure: This article was produced with AI technology and supervision of the content writer