An online marketplace for cars has become the latest Indian startup to achieve the coveted unicorn status.
Based in Gurgaon Droom It said Wednesday that it has raised $ 200 million in what it described as a pre-IPO growth funding round. The new investment valued the seven-year startup at $ 1.2 billion, up from $ 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 early backers and has raised about $ 342 million to date, according to records from information platform Tracxn. .
Droom operates a marketplace in India to help people buy and sell used vehicles of various categories such as cars and motorcycles. The startup provides verified listings for buyers along with tools to view, schedule, negotiate, and communicate with the seller. Sellers have tools to manage their listings and estimate pricing and dispute issues.
“Droom’s current annual execution rate is $ 1.7 billion for GMV and $ 54 million for net income. The company remains on track to achieve a GMV of $ 2 billion and a net income of $ 65 million in CY2021, ”he said in a brief statement.
“With today’s scale, technology-oriented business and operational efficiency, Droom is approaching profitability.”
The startup, which competes with other Indian unicorns including Spinny and Cars24, said it is working to apply for an initial public offering and listing on Nasdaq or India next year.
“Over the past 7 years, we have invested millions of dollars and thousands of human hours to build an end-to-end transactional marketplace based on complete technology for online car buying and selling,” said Sandeep Aggarwal, founder and CEO of Droom, in a statement.
“We have developed the complete technology-based machinery from first-mile services like OBV, ECO and History to half-mile services like loans and insurance and last-mile services like home delivery. Droom has been on a steady growth trajectory after Covid. While the automobile is the largest retail category, it is the least penetrated online. In a post-pandemic world, we expect car buying and selling to change rapidly online. “
Droom is the 17th Indian startup to become a unicorn as high-profile investors double their bets on the world’s second-largest internet market.