Indian Auto Market Droom Valued At $ 1.2 Billion In Pre-IPO Funding – TechCrunch
An online automotive marketplace has become the latest Indian startup to achieve coveted unicorn status.
Gurgaon-headquarters Room said on Wednesday he was raising up to $ 200 million in what he described as a pre-IPO growth funding round. The new investment, part of which has been secured, valued the seven-year-old startup at $ 1.2 billion, up from around $ 500 million in October 2018.
57 Stars, Seven Train Ventures and several existing investors funded the new round, said the startup, which counts Toyota and Lightbox among its first backers and had raised around $ 125 million before the new investment.
Droom operates a market in India to help people buy and sell used multi-category vehicles such as cars and motorcycles. The startup provides verified lists to buyers as well as tools to view, plan, negotiate and communicate with the seller. Sellers have tools to manage their listings, estimate prices and resolve disputes.
“Droom’s current annual run rate is $ 1.7 billion for GMV and $ 54 million for net revenues. The company remains on track to hit a GMV of $ 2 billion and net sales of $ 65 million in 2021, “he said in a brief statement.
“With the current scale, technology-driven business and operational efficiency, Droom is close to profitability. “
The startup, which competes with other Indian companies including Spinny and Cars24, said it is working to file an IPO and list on Nasdaq or India next year.
“Over the past 7 years, we have invested millions of dollars and thousands of human hours to create a fully technology-based end-to-end transactional marketplace for the online buying and selling of automobiles,” Sandeep Aggarwal, founder and CEO of Droom, said in a statement.
“We have developed complete machines based on technology, from first-mile services like OBV, ECO and History to mid-mile services like loan and insurance to last mile services like door-to-door delivery. . Droom has been on a steady growth trajectory after Covid. While automobiles are the largest retail category, it is the least penetrated online. In a post-pandemic world, we expect the buying and selling of automobiles to evolve rapidly online. “
Droom is the 17th Indian startup to become a unicorn as top investors double their bets in the world’s second largest internet marketplace.
Updated at 1:06 p.m. on July 28: The story has been updated to note that Droom is raising up to $ 200 million – and has yet to raise everything.