Droom to raise $200 mn; eyes IPO in 2022

NEW DELHI: Droom, an online marketplace for automobiles, on Wednesday said it has closed the first leg of its ongoing funding round of up to $200 million (over ₹1,487 crore), and it is pursuing a dual-track for a possible IPO in India or the US next year.

Speaking to PTI, Droom founder and chief executive Sandeep Aggarwal said the company is raising up to $200 million in multiple tranches and has already raised a significant chunk of the amount.

While he did not comment on the amount raised in this tranche, he said the overall transaction would provide a post-money valuation of $1.4 billion.

“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... We are pursuing a dualtrack for a possible IPO and aim to be listed either on Nasdaq or in India in 2022,” he added.

Aggarwal said the proceeds will be utilised to further penetrate in top 100 cities, last-mile delivery, and international expansion.

Droom, which competes with startups such as CarDekho, Cars24, Spinny and CarTrade, has previously raised about $125 million in funding from investors including Lightbox, Beenext, Digital Garage, Integrated Asset Management, Toyota Tsusho Corporation and others.

The company has a current annual run-rate is $1.7 billion in

GMV (gross merchandise value), and $54 million for net revenue. GMV is a term used in online retailing to indicate the gross merchandise value of the products sold through the marketplace over a certain period of time.

“We are on track to touch a GMV of $2 billion and net revenue of over $65 million in CY2021. With the current scale, technology-oriented business, and operational efficiency, we are nearing profitability,” Aggarwal said.