Given its traction in the local market, the company expects nearly two-thirds of its sales to come from electric vehicles over the next three years, up from less than 2% today, said the founder and chief executive. Investigator Sandeep Aggarwal told ET.
The company has partnered with 45 EV manufacturers, including Hero Electric, Okinawa and Kinetic, to sell on their platforms.
“Electric vehicles are needed now given the climate crisis we are witnessing. Consumer awareness and demand for EVs has rebounded over the past year,” Aggarwal said.
Electric two-wheeler and three-wheeler traction in the B2C segment has recovered considerably in the past few months, but demand momentum is set in the four-wheeler category as more electric models are introduced by automakers such as increase.
Hyundai and Mahindra & Mahindra, he said.
Droom currently registers an average of about 20,000 vehicles per month. About 300 of them are electric vehicles.
At its current run rate, the company expects to register a gross merchandise value of $2.75 billion this fiscal year. In fiscal year 2020 he recorded his GMV of $1 billion.
Droom, which entered the unicorn club after surpassing the $1 billion valuation in its final funding round last year, plans to launch an initial public offering as soon as the market stabilizes. The company he filed a draft prospectus (DHRP) with market regulators in November 2021, but has postponed the sale of its shares due to technological disruption and the global geopolitical crisis.
“If the market improves, we will be the first to go public,” Aggarwal said.
According to the filing, the company plans to raise Rs 30 crore at a valuation of over $2 billion from IPO to fund expansion. In its last funding round, he valued the company at $1.2 billion.
According to DRHP, the company will spend about Rs 400 crore from the IPO proceeds on organic growth initiatives and Rs 115 billion on organic growth.
According to the filing, Droom reported revenue of Rs 125 crore in fiscal year 2021 and sold 45,445 vehicles through its platform. In the year he recorded a loss of Rs 6.88 crore.
Aggarwal said the local market has strong demand momentum and the company is now “close to profitability.”
According to industry estimates, the GMV of used online trading vehicles in India, which was Rs.
Droom is an artificial intelligence-driven online marketplace for buying and selling used and new vehicles. The company was founded in his 2014 and operates in 1,161 towns and cities. Aggarwal previously (2011) founded ShopClues.
Droom has raised $130 million to date. The company’s principal investors include Beenos, Lightbox, Beenext, Digital Garage, Integrated Asset Management, Toyota Tsusho, and the office of Yuzuru Hirao (founder of ZigExn).
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