Droom Secures $3 Mn Funding To Fuel Its IPO Plans

IPO-bound Droom, an Automobile ecommerce platform has raised $3 million (around Rs 24.75 Cr) in a funding round co-led by India Accelerator and Finvolve.

Other angel investors, including Rayzon Solar founder Hardik Kothiya, among others, also participated in this round.

The startup will use the funds to improve its technology, attract more customers, and grow its presence in India.

The investment will also help Droom move faster in refiling its initial public offering (IPO) papers this year.

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“With this investment, we are looking forward to supporting Droom in entering its next phase of growth, towards an impactful IPO and continued leadership in the industry,” said Ashish Bhatia, cofounder of Finvolve.

“We deliberately kept the valuation very low for the Indian subsidiary as a strategic move to give material upside to Indians who did not have opportunity to participate in the making of Droom in the past one decade,” said Sandeep Aggarwal, Founder and CEO of Droom, in response to queries about the company’s valuation. “We plan to raise a bit more capital in the near term at much higher valuation both in Singapore and India.”

About Droom

Founded in 2014 by Sandeep Aggarwal, Droom is an online platform in India for buying and selling new and used vehicles. It started with budget-friendly cars but shifted to mid-premium and luxury vehicles in 2022, boosting its profit per vehicle from Rs 40,000 to Rs 1.6 lakh.

The company now offers car financing, software solutions, advertising and rentals.

So far, Droom has raised about $296 million, with investors including Lightbox, 57 Stars and Seven Train Ventures.

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Originally published at https://viestories.com.