Heaptalk, Jakarta — Indonesia’s Broom automotive startup announced its cooperation with Bank DBS Indonesia (11/10) in the form of a credit facility worth US$6.3 million or equal to Rp100 billion. The credit facility is expected to be a growth accelerator for Broom to expand its service coverage for the second-hand car showroom business in Indonesia while continuing to develop the digital industry for DBS Bank.
This strategic cooperation is inaugurated through the Memorandum of Understanding (MoU) signing, performed by the CEO and Co-Founder of Broom, Pandu Adi Laras, and the Executive Director of Institutional Banking Group, Kevin Tanuwidjaja in Jakarta.
In response to the partnership, Pandu stated, “We are incredibly excited to cooperate with DBS Indonesia. This credit facility will significantly impact showroom businesses in Indonesia in optimizing their business. We expect this move will positively progress the automotive ecosystem in Indonesia. Also, this credit facility will accelerate Broom’s achievement to reach 5,000 showrooms and expand operational areas in other major cities on Java before 2022 ends. Apart from the strategic financial support, the partnership has also validated the business model of Broom,”
Established in June 2021, Broom focused on the showroom business ecosystem of the former cars through the technology and optimization of vehicle inventory access. The company considered the credit facility disbursed by DBS Bank would provide additional liquidity for transformation that will become a development service and the company coverage.
The current Broom’s primary product, Buyback, allows second-hand car showrooms to obtain a better capital source and income through the inventory stock utilization that usually accumulates by temporarily selling the vehicles in their inventory. Afterward, the car showroom can purchase other cars aligned with the latest market interest and necessities. Since its establishment this year, the Buyback service has served over 3,000 showroom businesses in the Jakarta Metropolitan Area and Surabaya.
Previously, Broom gained a similar credit facility from multiple financing institutions in early 2022. On the other hand, this automotive startup has also seized its seed funding round from AC Ventures and Quona Capital worth USD3 million in February this year.
The Executive Director of the Banking Group at PT Bank DBS Indonesia, Kevin Tanuwidjaja, conveyed, “Through this strategic collaboration with Broom, DBS Indonesia has also strengthened its support to the startup industry in the country. Various technological innovations in the automotive sector have continued to grow. We expect this funds distribution can bolster Broom’s business expansion. As a purpose-driven bank, we would continue to deliver positive matters in retrieving the economy in Indonesia,”
