Funding from this new round will be used to expand services in the top 100 cities, last-mile delivery and expand internationally.
Droom Technology Private Limited
India’s largest and leading AI powered online automobile marketplace Droom has been valued at $1.2 billion after a new round of funding. The company has closed the first phase of its current pre-IPO growth funding round of up to $200 million in funding. New investors including 57 Stars and Seven Train Ventures participated in the first closing of the funding round for the second quarter of 2021, in addition to participation from several existing investors. The company is following a dual-track for a potential IPO and aims to list on Nasdaq or India in 2022.
Droom currently has an annual run rate of $1.7 billion for GMV and $54 million in net revenue. The company is on track to reach GMV of $2 billion and net revenue of $65 million+ in FY21. With the current scale, technology oriented business and operation efficiency, Droom is close to profitability.
Droom has experienced a massive amount of digital adoption during the pandemic as people prefer to buy their own vehicle over public transportation or ride sharing. The company expects online penetration for automobile purchase and sale to increase to 7% from the current 0.7%.
Commenting on this great achievement, Sandeep Agarwal, Founder & CEO, Droom, said, “Over the last 7 years, we have spent millions of dollars and thousands of human labor to create a fully technology-based end-to-end transactional marketplace for online buying and selling of automobiles. Hours invested. We have developed a complete tech-based machinery from first mile services like OBV, ECO, and HISTORY to mid-mile services like loan and insurance as well as last-mile services like doorstep delivery. Droom is on a continuous growth path after COVID. Automobile is the largest retail category, but its presence in the online market is very less. In the post-pandemic world, we expect automobile buying and selling to increasingly shift online.
Commenting on this collaboration, Gene Pohren, Managing Director, 57 Stars said, “Globally we are seeing an online shift in automobile buying and selling for both ICE and electric vehicles. We feel that Sandeep and his team have created an impressive digital ecosystem that can revolutionize the experience of buying and selling an automobile.”
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