Broom, an Indonesian digital automotive startup, has raised $25 million in an extended Series A round led by existing backer Openspace Ventures, according to a statement on Tuesday.
The round also saw participation from other existing investors, including AC Ventures, Quona Capital, MUFG Innovation Partners, and PKSHA Capital.
Additionally, the company secured credit facilities from various institutions such as Komunal, Funding Societies, Modalku Finansial Indonesia, Alami, Koinworks, Helicap, and DBS Indonesia, as well as support from several high-net-worth individual investors (HNWIs).
With this investment, Broom aims to accelerate market expansion, deepen strategic partnerships, and build a top-tier team to drive sustainable success in both dealer and buyer markets.
Openspace led the firm’s $10-million pre-Series A funding announced in March 2023.
Pandu Adi Laras, CEO of Broom, stated the automotive industry faces challenges, such as outdated financing options and lack of digital integration. Broom aims to provide comprehensive solutions, including more innovative and inclusive financing for dealers across Indonesia, to transform the industry and drive sustainable growth.
“[..] With this new funding, we are ready to take Broom’s business to the next level and solidify our position as the leading digital automotive startup for automotive dealers in Indonesia,” said Laras.
The company claims to have shown remarkable progress in both its core and new business lines, setting records in the first half of 2024. Broom’s disbursement from its Buyback product — designed for automotive dealers to temporarily sell their vehicle stock for working capital — saw a 144.9% growth year-on-year, reaching 1.1 trillion rupiah ($72.5 million) and supporting over 7,000 dealers.
Broom’s new service, Broom Leasing Channeling (BLC), launched in late 2023, has also shown promising results. In the same period, it has generated 2,300 transactions with total revenue exceeding $17 million, capturing a 25% market share.
With this additional funding, Broom will focus on accelerating market expansion to western and eastern Indonesia, collaborate with 23 multi-finance companies to streamline transaction processes through API integration, and strengthen its organisational capabilities.
“Amidst challenging conditions in the funding sector, with data showing Asia’s investment levels at their lowest since 2015, Broom’s ability to secure funding reaffirms our strong growth trajectory. We are confident that this achievement will provide a solid foundation for long-term success,” Laras concluded.
