Droom Secures Rs 25 Crore in New Funding Round

IPO-bound used car marketplace Droom has successfully raised Rs 25 crore, which is about $2.9 million, in a recently concluded funding round. This round was co-led by India Accelerator (IA) and Rameshchandra Shah, with contributions from numerous individual investors including Rajkumar Sorathi, Hardik Kothiya, Shirish Patel, among others.

The board at Droom has approved a special resolution to issue 15,62,500 preference shares at a price of Rs 160 each, aimed at raising the targeted amount of Rs 25 crore or $2.9 million, as reflected in their regulatory filings obtained from the Registrar of Companies (RoC).

Both India Accelerator and Shah are set to invest Rs 5 crore each. Shirish Patel, who is the CEO of Prudent Corporate Advisory, is expected to contribute Rs 3 crore, while the remaining portion will be funded by various other individual investors.

The proceeds from this fundraising will be directed towards general corporate objectives, according to the filings.

Startup Superb estimates indicate that the Gurugram-based Droom will achieve a valuation of approximately Rs 3,097 crore or $360 million following this allotment.

Sandeep Aggarwal, the Founder and CEO of Droom, commented on the company’s valuation, stating that the valuation for the Indian subsidiary was deliberately kept low as a strategic move to provide significant upside potential for Indian stakeholders who have not had the chance to be involved in Droom’s growth over the past decade. He also mentioned plans to raise additional capital at a considerably higher valuation in the near future, both in Singapore and India.

About Droom

Droom operates as an online marketplace focused on the buying and selling of used vehicles, including cars, motorcycles, and electric vehicles. Additionally, it also provides rental services.

According to various sources from a startup data intelligence platform, Droom has successfully raised around $330 million from numerous investors, including 57 Stars, Seven Train Ventures, Lightbox, and Beenext.

Financial Performance

Droom reported a revenue of Rs 85 crore for FY24, marking a significant 66% decrease from Rs 253 crore in FY23. However, it successfully lowered its losses by 35%, amounting to Rs 40 crore in FY24.

Furthermore, Droom is reportedly gearing up to file draft documentation for a substantial Rs 1,000 crore IPO in 2027, with a targeted valuation ranging from $1.2 billion to $1.5 billion.