Other investors in the pre-seed round included venture firm Quona Capital, coffee chain Kopi Kenangan and bookkeeping start-up Lummo.

Broom cofounder and CEO Pandu Adi Laras said the capital would be used to develop new products and services to improve the customer experience, expand the firm’s operations to more Indonesian cities and double the team by the end of 2022.

“We will continue striving in our journey to empower used car dealers in Indonesia with the support from reputable investors,” Pandu said in a statement on Friday.

Read also: Auto financing to drive recovery of multifinance sector in 2021: APPI

A motor vehicle financing company that seeks to provide end-to-end financial solutions for car dealer inventories, Broom equips dealers with operational enhancements, online sales enablers and access to financing.

Eventually, the start-up hopes to be at the center of digitizing the dealership network.

Some $14 billion in annual transactions were conducted in Indonesia’s used car industry, and small or medium dealers represented over 80 percent, with little to no access to affordable financing, said AC Ventures founder and managing partner Adrian Li, pointing to growth potential for the platform.

“Broom seeks to empower these dealerships with financial products and enablers to help them scale,” Adrian added.

Read also: Auto financing leader eyes 5 percent profit growth

Car dealers are facing challenges selling on platforms, finding the right buyers within their locations and financing, the company says.

Broom’s financing program aims to offer short-term loans with competitive interest rates by partnering with financial institutions that provide low-cost financing.

The program allows customers to access loans by using their existing inventory as collateral and claims to have a fast approval process.

Established in 2021, Broom says it serves more than 2,000 used car dealerships in the Greater Jakarta area and aims to leverage its partnership with state-owned lender Bank Rakyat Indonesia (BRI) subsidiaries BRI Finance and BRI Insurance to boost dealership numbers.