Used Car Marketplace Droom Secures INR 25 Cr Ahead of Planned IPO The raised funds will be used for general corporate purposes.
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IPO-bound used car marketplace Droom has secured INR 25 crore (USD 2.9 million) in a fresh funding round co-led by Finvolve, IA Growth Opportunities Fund II, and investor Rameshchandra Shah.
The round also saw participation from Rajkumar Sorathi, Hardik Kothiya, Shirish Patel, and other individual investors.
Droom's board approved a special resolution to issue 15,62,500 preference shares at INR 160 each, according to regulatory filings sourced from the Registrar of Companies (RoC).
Key investors Finvolve, IA Growth Opportunities Fund II, and Rameshchandra Shah have committed INR 5 crore each, while Shirish Patel, CEO of Prudent Corporate Advisory, has invested INR 3 crore. The remaining amount comes from other individual backers.
The proceeds will be used for general corporate purposes, as per the filings. Commenting on the company's valuation, Sandeep Aggarwal, Founder and CEO of Droom, stated, "We deliberately kept the valuation low for the Indian subsidiary to provide upside to Indian investors who didn't get an opportunity in the past decade. We plan to raise additional capital at a much higher valuation in both Singapore and India soon."
Droom, which operates an online marketplace for used cars, motorcycles, and electric vehicles, reported INR 85 crore in revenue for FY24, reflecting a 66% decline from INR 253 crore in FY23. However, the company managed to reduce losses by 35% to INR 40 crore in FY24.
Despite financial challenges, Droom is gearing up for an INR 1,000 crore IPO in 2027, aiming for a valuation between USD 1.2 billion and USD 1.5 billion.
