Droom, an online automotive marketplace, has announced that it has raised $30 million Series-D investment jointly led by Toyota Tsusho Corporation, a unit of Japan’s automobile major Toyota Group, and existing investor Digital Garage.
Along with Toyota and Digital Garage, four more new investors from family offices of Hong Kong, Southeast Asia have participated in this funding round.
Apart from funding, Toyota Tsusho Corporation has also signed a memorandum of understanding with Droom to facilitate the platform’s expansion in various South East Asia markets. The Tokyo-based firm is engaged in trading automobile raw materials, along with their manufacturing, logistics, and sales.
In a statement released by the company, Toyota Tsusho Corporation said:
We and Droom are sharing the same vision, which is bringing trust and transparency to the transactions of automobiles. We believe that this partnership contributes the establishment of highly transparent transaction of automotive the wholesome development of auto market of any developing countries, by combining Droom’s technologically advanced platform and our various automotive business experience of all over the world.
The company says that it will use the proceeds from latest round towards initiatives to grow its market share in India, technology expansion and launch in international markets. The company said, “the newly raised funds will be used to further strengthen Droom’s domination in the online automobiles marketplace segment in India, where it currently owns nearly 70% market share, as well as to make its ecosystem service tools more scalable and to expand its international presence.”
Droom was launched in 2014 by Sandeep Agarwal, who is also a co-founder of e-commerce firm ShopClues and Rishab Malik. The firm is registered in Singapore as Droom Pte Ltd. The platform serves as an online marketplace to buy and sell cars and two-wheelers.
Over the past few years, the company has also branched into allied services like fair value calculator, roadside assistance and auto loans in a bid to increase revenue.