Droom, a leading Indian automobile e-commerce platform, today announced the successful completion of a $3 million (~₹24.75 crore) funding round, marking a significant milestone in the company’s strategic growth trajectory. The investment, co-led by India Accelerator and Finvolve, with notable participation from angel investors including Hardik Kothiya, founder of Rayzon Solar, will be pivotal in accelerating the company’s expansion plans.
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Strategic Investment Priorities
The fresh capital injection will be strategically deployed across three key focus areas:
- Strengthening technological infrastructure
- Expanding customer acquisition strategies
- Scaling operations across India
IPO Roadmap and Market Positioning
Droom is set to fast-track its second attempt at going public, with plans to refile its IPO papers in 2025. This comes after the company strategically withdrew its previous ₹3,000 crore public offering in 2021 due to market volatility.
Founded in 2014 by Sandeep Aggarwal, Droom has demonstrated remarkable adaptability in the competitive auto marketplace. The company pivoted from its initial focus on budget-friendly vehicles to targeting mid-premium and luxury car segments in 2022, successfully increasing profit per vehicle from ₹40,000 to ₹1.6 lakh.
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Diverse Business Ecosystem
Beyond vehicle sales, Droom has strategically diversified its portfolio to include:
- Car financing solutions
- Automotive software platforms
- Targeted automobile advertising
- Car rental services
To date, the company has attracted cumulative funding of $296 million from prominent investors such as Lightbox, 57 Stars, and Seven Train Ventures.
Financial Outlook and Market Context
While Droom experienced a 66% revenue decline to ₹85.4 crore in FY24, the company has made significant strides in cost management, reducing its net loss by 35% to ₹40.4 crore. The upcoming IPO, targeting ₹1,000 crore with a planned pre-IPO round of ₹200 crore, aims to boost domestic shareholding and provide additional growth capital.
Industry Perspective
Droom’s strategic moves come at a critical time for India’s automobile market, which is poised to become the world’s largest by 2030, with a strong emphasis on electric and alternative fuel vehicles. The online automobile sector is witnessing unprecedented innovation, driven by AI and metaverse technologies.
“This funding round represents a pivotal moment for Droom,” said Sandeep Aggarwal, Founder and CEO. “We are committed to transforming the automotive e-commerce landscape in India through technology, innovation, and customer-centric solutions.”
About Droom
Droom is a pioneering online automobile marketplace that provides comprehensive solutions for buying, selling, and servicing vehicles across India. With a focus on technology-driven approaches and customer experience, Droom continues to redefine the automotive transaction ecosystem.
