![]() “Indonesia’s used car market is huge, but fragmented and unorganised,” said Nobutake Suzuki, President and Chief Executive Officer of MUFG Innovation Partners. The company transacted over $300 million worth of inventory through its Buyback scheme and successfully onboarded 5,000+ used car dealers.īroom’s expansion efforts have also seen it establish 6 branches across Greater Jakarta, Surabaya, and Yogyakarta.Īs evidence of its rapid growth, Broom’s Gross Merchandise Value (GMV) has increased 16-fold year-on-year. Over the past year, Broom has already shown impressive progress. Given the size and scope of the existing market as well as the importance of mobility in Indonesia, investors have recognized the future growth potential in the secondary car business, and backed Broom to be one to deliver on it. This market is primarily underpinned by the country’s 50,000+ dealerships, which are involved in at least 85 percent of used-car transactions. Used car transactions contribute up to 6 times that of new car sales, resulting in a sizable $65 billion industry. Whilst Indonesia contributes approximately 30.6 percent of new car sales in ASEAN, the country’s used-car market is even more substantial. “We see a bright future for this company and are proud to be a part of their journey,” said Ian Sikora, Executive Director at Openspace.Īccording to the statement, the opportunities provided by the used car industry have remained largely untapped. By leveraging technology and data analytics, they are unlocking financing to a segment of Indonesian small businesses that were previously overlooked, “We’re excited to partner with Broom on their mission to change the way dealer financing in Indonesia works. This scheme allows dealers to optimise their inventory, accelerate turnover, and eliminate non-performing loans.īroom also offers a digital showroom management platform that helps dealers operate their businesses more efficiently.Īdditionally, the application enables dealer-to-dealer trading, opening up new avenues for dealers to quickly move their inventory and accelerate turnover. The company’s flagship service, Buyback, provides dealers with short-term working capital through a temporary car sale service with a repurchasing option. “With these strategic measures in place, we can now concentrate on delivering a broader range of value-added services to our customers, positioning Broom as a comprehensive all-in-one solution for automotive SMEs,” he added.įounded in June 2021, Broom aims to empower used-car dealers in Indonesia, many of whom face a lack of access to capital and operate relatively unorganised businesses. ![]() He also noted investing in top talent in 2022 has accelerated the firm’s efforts to identify the optimal product market fit, as evidenced by its high retention rate.īy implementing a sustainable business model with operational efficiency, he said the firm has established a strong foundation for Broom’s continued success, particularly in the current economic climate. “We’re confident that we have found the right recipe to thrive, and we’re excited to see how this new chapter will unfold for us and for our dealers,” said Broom Chief Executive Officer and Co-Founder Pandu Adi Laras. “We are grateful for the support from our investors, lenders, and partners that have fueled our growth so far, This cutting-edge approach will provide customers with greater transparency and help Broom to further differentiate itself in the market. ![]() With a larger credit facility, Broom will be able to serve a greater number of dealers and handle a higher volume of transactions, facilitating the company’s exponential growth.īy applying the latest technology to the sector, Broom also plans to pursue the development of an intelligence model for assessing car quality and more effectively appraise the fair-value of vehicles. The round also saw participation from MUFG Innovation Partners and BRI Ventures, alongside existing investors AC Ventures and Quona Capital, Broom said in a statement.īroom’s newly-raised funds will enable the company to diversify its product offerings and further accelerate inventory turnover for both Broom and its dealers.Īdditionally, the company aims to double its credit facility from external lenders, building on its previous success in securing a total of $12 million in debt facilities from DBS Indonesia and BRI in 2022. Broom, an all-in-one automotive small and medium sized enterprise (SME) solutions startup based in Indonesia, announced Tuesday its $10 million Pre-Series A funding round led by Openspace. ![]()
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