The Indonesian used car market is on a course for growth fueled by a number of trends: the increasing digitization in used car sales; a larger variety of finance options; and the COVID-19 pandemic, which pushed the idea of private car ownership.
Broom, an Indonesia-based auto-financing startup that wants to help used car dealers work more efficiently by applying the asset-backed lending model to their businesses — offering in-app trading among dealers and providing new financing to do so — said Tuesday it has closed a $10 million pre-Series A financing round led by Openspace Ventures.
Other investors, including MUFG Innovation Partner, BRI Ventures and its previous backers like AC Venture and Quona Capital, also participated in the latest round. (Broom declined to comment on whether it or its investors have been affected by the unravelling Silicon Valley Bank crisis.)
The startup was founded when Pandu Adi Laras, chief executive officer (CEO) and co-founder of Broom, wanted to sell his car a few years ago, which he was doing because he needed cash to renovate his house. However, the used car dealers Laras visited told him they could not afford to repurchase Laras’ car due to limited money in hand and working capital, only offeri …
