NewDelhi: Droom, India’s largest online vehicle marketplace, has been valued at $1.2 billion in a brand-new series of funding from investors, elevating the corporate to India’s unicorn membership.
The company completed the first leg of a pre-IPO funding worth up to $200 million. The sphere included both existing and new investors, such as 57 Stars and Seven Prepare Ventures. The company is seeking a feasible IPO and intends to be listed on the Nasdaq in the United States or in India in 2022.
“In past seven years, we have invested thousands of dollars and hundreds of human hours to make a complete technology based end-to-end transactional market for buying and selling automobiles online in India,” stated Sandeep Aggarwal, founder and CEO of Droom.
Droom’s current annual run rate is $1.7 billion in GMV (gross merchandise value) and $54 million in web revenue. The company stated that it is on track to achieve a GMV of $2 billion and a net income of more than $65 million in fiscal year 2021. Droom is approaching profitability with its current size, technology-driven enterprise, and operational efficacy.
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“In a post-pandemic scenario, we expect car buying and selling to shift quickly online,” said Aggarwal.
Droom has found an increase in client preference for automobile ownership over public transit or ride-sharing. The company anticipates that online penetration for car buying and selling will reach 7% by 2025, up from 0.7% currently.
“Globally, we’re seeing car purchasing and selling move online, for both ICE and electric automobiles,” said Gene Pohren, managing director of 57 Stars. “We believe Sandeep and his team have built a formidable digital ecosystem that will transform the car buying and selling experience.”
Droom’s competitors include Cars4, CarDekho, CarTrade, and Spinny. This year alone about 17 Indian companies joined the unicorn club, which includes firms with a worth of more than $1 billion.
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