uqwo.com – Car dealers generally work in the traditional way. Not a few car dealers find it difficult when digitizing their business in making sales and finding the right buyer at the location. Even the financing aspect is often a challenge for dealers, due to the lack of documentation. Broom, a technology-based finance company focused on providing comprehensive auto dealer inventory financial solutions , recently raised US$3 million in a pre-Seed Funding round led by AC Ventures.
Interestingly, Quona Capital and several angel investors including Kopi Kenangan and Lummo participated in the round. Based on this funding, Broom plans to accelerate the company’s growth by enhancing the technology-based customer experience through product and service innovation, expanding its reach in major Indonesian cities, and increasing the number of teams by the end of 2022.
Broom aims to be a center for digitizing dealer networks in Indonesia. Shown by being in a unique position as a fintech player that provides a single platform for Small and Medium Enterprises (SMEs) in the automotive sector to digitize their business processes. Not surprisingly, through the Broom platform, automotive SMEs can manage inventory, gain access to financing, and manage a number of sales instruments.
“We want to be the first choice for used car dealers to grow their business by providing a variety of products and services. With the support of several investors who believe in our vision, this will further increase our confidence to continue fighting in our journey to empower used car dealers in Indonesia,” added Pandu Adi Laras, Founder and CEO of Broom.
Through its platform, Broom provides dealers with three solutions . Starting from the opportunity to improve dealer operational aspects , activating online sales , to gaining access to financing, which includes offering short-term loan facilities with competitive interest rates. This is because Broom has partnerships with financial institutions that provide low-cost financing. That way, Broom users can access loan facilities by utilizing existing inventory as collateral with a fast approval process.
“Along with digital penetration that is increasingly widespread in various industries, the financing aspect becomes a very big opportunity. The used car industry has an annual transaction value of US$ 14 billion, and SME dealers account for more than 80% even without access to affordable financing. We see Broom working to empower these dealers through financial and other support products to help scale their business,” said Adrian Li, Founder & Managing Partner, AC Ventures.
Established in 2021, Broom already has more than 2,000 used car dealers in the Greater Jakarta area and is optimistic that it will continue to grow, considering that this startup has promising partnerships with major financial institutions, such as BRI Finance and BRI Insurance