An online marketplace of automobiles, Droom has made the latest entry in the unicorn club with raising money of $200 million considering its pre -IPO growth funding round. Droom becomes the 17th company in a row to become Unicorn this year.
Gurgaon-headquartered Droom is the second entry in Unicorn club in the online automobiles segment after Cars24, which made an entry last year.
Apart from existing investors, this round of funding has seen participation by new investors, including 57 Star and Seven Train Venture. After this round of funding, the total valuation of the company has reached the $1.2 billion mark.
Although the company didn’t disclose the name of existing investors who participated in this round, some prominent existing backers are Beenext, Lightbox, Toyota Tsusho Corporation, and Digital Garage.
Droom operates a marketplace in India to help and assist people buy and sell used multi-category vehicles such as cars and motorbikes. The start-up provides verified listings for buyers and tools to view, schedule, negotiate and communicate with the seller. Sellers are provided with tools to manage their listings and estimate prices and dispute issues.
The Singapore registered company is pursuing a dual track for a possible IPO and aims to be listed either on Nasdaq or in India by the end of next year.
The company’s current annual run rate is $1.7 billion for GMV (Gross Merchandise Value) and $54 million for net revenue, and it remains on track to touch a GMV of $2 billion and net revenue of $65 million+ in the current year 2021. The company said in a statement.
Droom has been on a steady growth trajectory after covid, while automobiles are the largest retail category, it is one of the least penetrated online, in the post-pandemic world, we expect automobile buying and selling to shift online rapidly. Said Sandeep Aggarwal, CEO, and founder of Droom.
In the used car retailing segment, Droom competes with companies like Cars24, CarDekho, and Spinny. It’s worth noting that the ride-hailing company Ola is also making an entry in this segment with a new vertical called Ola Cars very soon.