Droom, an online automobile marketplace, has raised $20 million (₹130 crore) in its Series C round of funding. The round was led by Integrated Asset Management and Japan’s Digital Garage.
Integrated Asset Management (Asia) Limited is a Hong Kong-based private investment office. Along with them, the round also saw participation from existing institutional investors including Lightbox Ventures, BEENEXT and Beenos.
Apart from this, a number of prominent institutional investors and family offices from China, Hong Kong, and Taiwan participated in the round.
With this current round of funding, the total amount raised by Droom so far now stands at $65 million. The last fund infusion came in June 2016, when the company raised undisclosed funding in Series B.
Commenting on the investment Jeffrey Yam of Integrated Asset Management said,
India is the next China as far as consumer internet is concerned. We are really impressed by Droom’s ability to drive innovation, create scalable technology platforms, and capture the growth of the Indian automobile industry. Droom creates value for the industry by directly addressing and solving common pain points experienced by buyers and sellers.
Droom Founder and CEO, Sandeep Aggarwal said,
Series C rounds typically accelerate the pace of growth for a business and help it establish its undisputed leadership in its sector and that’s exactly the case with us. This fresh capital infusion into our war chest will once and for all give us an unchallenged competitive edge, not just in the online automobile space but in the e-commerce landscape at large.
The company is planning for expansion in Southeast Asia. The newly-raised capital will be leveraged to consistently build on its tech platform and drive greater adoption of its ecosystem tools such as History, ECO, OBV and Credit. Apart from the expansion, the automobile portal is also looking to get registered on NASDAQ by 2019.
Droom was founded in April 2014 by Sandeep Aggarwal along with Rishab Malik. The online automobile marketplace follows all four business models i.e. B2B, B2C, C2C, C2B.
The company claims to have a GMV of $554 million and is growing at an annualised rate of 350% year-on-year. Droom’s co-founder Rishabh Malik disclosed that about 94% of this GMV is contributed by big assets and the remaining 6% is contributed by the ancillary services (Eco, Credit, History, OBV) in the GMV.
According to an IBEF report, the automotive sector is valued at approximately $15 Bn in the top eight cities, of which the after sales market is close to $7 Bn and growing at a healthy pace.