Droom, an automobile e-commerce platform has raised $2.9 million in a fresh funding round co-led by India Accelerator and its multi-stage VC fund Finvolve.
The round also includes participation from other marquee investors like Rameshchandra Shah, Rajkumar Sorathi, Hardik Kothiya (founder of Rayzon Solar), Shirish Patel, and others.
The funds raised will be used to strengthen its infrastructure with next-gen technologies, expand its footprints across the nation and accelerate customer acquisition strategies. This investment will also expedite Droom’s decision to refile its IPO papers in the ongoing CY.
Sandeep Aggarwal, Founder and CEO of Droom said, “We’ve always been driven by a bold vision to develop the country’s largest online automobile marketplace and become a pioneer in innovating vehicle transactions. As we enter this high-growth phase, we are thrilled to have IA and Finvolve onboard as strategic investors. Their belief in our vision and commitment to boosting innovation will enable us to scale faster.”
Ashish Bhatia, Co-founder of Finvolve said, “Droom has established itself as a category leader in the Autotech space and we strongly believe in its vision to transform the used vehicle marketplace in India. 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.”
Founded in 2014 by Sandeep Aggarwal, Droom is an online platform in India for buying and selling new and used vehicles. Initially focusing on budget-friendly cars, the company shifted in 2022 to mid-premium and luxury vehicles, increasing its profit per vehicle from ₹40,000 to ₹1.6 lakh.
Droom has expanded its services to include car financing, software solutions, advertising, and car rentals.
In FY24, Droom recorded a significant growth in its revenue by reducing its losses by 35% to ₹40 crore in FY24. It is planning to file draft papers for a ₹1,000 crore IPO in 2027, targeting a valuation between $1.2 billion and $1.5 billion.
