- Proceeds will be utilized to further penetrate in top 100 cities, last-mile delivery, and international expansion
- On track to do $2 bn in GMV in 2021
Mumbai, July 28, 2021: – Droom, India’s largest and pioneering AI-driven online automobile marketplace, has been valued at $1.2 bn in the latest round of funding. The company has closed the first leg of its ongoing pre-IPO growth funding round of up to $200 mn. In addition to participation by several existing investors, new investors including 57 Stars and Seven Train Ventures participated in the first closing of the round in Q2-21. The company is pursuing a dual-track for a possible IPO and aims to be listed either on NASDAQ or in India in 2022.
Droom’s current annual run-rate is $1.7 bn for GMV and $54 mn for Net Revenue. The company remains on track to touch a GMV of $2 bn and a Net Revenue of $65 mn+ in CY2021. With the current scale, technology-oriented business, and operational efficiency Droom is nearing profitability.
Droom has seen massive digital adoption during the pandemic besides increasing preference in consumers for ownership of automobiles versus public transportation or ride-sharing. The company expects online penetration for automobile buying and selling to increase to 7% in 2025, up from 0.7% currently.
Commenting on the milestone, Sandeep Aggarwal, Founder and CEO, Droom “Over the past 7 years, we have invested millions of dollars and thousands of human hours to build a full technology-based end-to-end transactional marketplace for buying and selling of automobiles online. We have developed the complete technology-based machinery starting from first-mile services such as OBV, ECO, and History to mid-mile services like loan & insurance and last-mile services like doorstep delivery. Droom has been on a steady growth trajectory after Covid. While automobile is the largest retail category, it is the least penetrated online. In a post-pandemic world, we expect automobile buying and selling to shift online rapidly”.
Commenting on the association, Gene Pohren, Managing Director, 57 Stars, said “Globally we are seeing automobile buying and selling shifting online, for both ICE and electric vehicles. We think Sandeep and his team have built an impressive digital ecosystem that can revolutionize the automobile buying and selling experience”.
Droom is a tech and data science-driven online automobile marketplace, which offers 21st-century experience in buying and selling automobiles in India. As a marketplace, Droom offers Great Selection, Low Prices, Trust, Transparency, and Convenience second to none. Droom has 1.1 mn+ automobiles to choose from with a listed inventory of $15.7 bn+ from over 20.6k+ Auto Dealers and a presence in 1,105 cities. Droom has 6.5 mn+ Facebook followers, making it the largest auto-focused community in India.
Droom has built the entire eco-system around used automobiles for the digital economy, including Orange Book Value (used vehicle pricing engine | 503 mn+ Queries), ECO (1,000+ points vehicle inspection | 150k+ inspections), History (history records for used vehicles | Database of 250 mn+ vehicles), Discovery (dozens of pre-buying research tools), and Financial Services (Loan & Insurance).
With an 80% market share of automobile e-commerce, Droom is India’s largest automobile platform online and among the largest e-commerce companies. Droom is among the most trusted consumer internet brands in India often recognized for its innovative approach and technology and is backed by marquee global investors.