DROOM SEEKS SEBI APPROVAL FOR ₹3,000-CR SHARE SALE

MUMBAI: Indian automobile e-commerce platform Droom Technology Ltd has sought Securities and Exchange Board of India approval to raise around ₹3,000 crore through an initial public offering (IPO).

The IPO consists of a fresh issue of ₹2,000 crore and an offer for sale of up to ₹1,000 crore by its promoter Droom Pte Ltd, which wholly owns Droom Technology.

The company may consider a pre-IPO sale of shares worth up to ₹400 crore, according to the draft red herring prospectus (DHRP).

The firm plans to use Rs1,150 crore for funding organic growth and ₹400 crore for inorganic growth.

In July 2021, the firm raised $200 million (₹,486 crore) in a pre-IPO funding round at a valuation of $1.2 billion, VC Circle reported. The funds are being raised from new investors, including 57 Stars and Seven Train Ventures, as well as existing investors, the report said.

ICICI Securities, Axis Capital, Edelweiss Financial Services, HSBC, and Nomura are the lead managers to the issue.

For fiscal year 2021, the firm reported a revenue of ₹135.52 crore against ₹181.37 crore a year ago. Net loss for the year narrowed to ₹68.88 crore from ₹89.60 crore last year. As of June 2021, its total debt is ₹30.18 crore.

Its business was impacted ad witnessed a significant reduction in operational activities during the pandemic, the firm said.

Droom Technology, founded by Sandeep Agarwal in 2014, is a technology and data science company that facilitates automobile buying and selling online through a combination of an asset-light automobile e-commerce platform and a technology-driven vertically-integrated proprietary ecosystem of products and services for the automobile industry. It is the only major Indian player with a completely online transactional model and offers one of the largest selection of automobiles among the major online players.