Indonesia-based auto financing startup Broom has raised $4.0 million U.S. in funding. Participants included existing investors OpenSpace Ventures, AC Ventures, Mufg Innovation Partners.

Founded in June 2021, Broom helps used car dealers to work more efficiently by means of asset-backed lending. Buyback, its flagship product, provides showrooms with short-term working capital through a temporary car-sale service, enabling them to borrow against their vehicle inventory.

According to the company, it is currently working with more than 3,000 dealers in Greater Jakarta and Surabaya and is expanding nationwide.

“With Buyback, [dealers] can optimize their inventory and accelerate turnover, thus increasing their revenue; our app lets them manage the in and out flow easily and trade with other dealers in our ecosystem,” according to Broom co-founder and CEO Pandu Adi Laras.

“The traditional approach is more like opening mom and pop stores, where sellers need to wait for their inventory to get sold and then they can use the money to get new inventory to sell.”

In March this year, Broom raised $8.0 million U.S. in a funding round led by OpenSpace Ventures.

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