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Droom raises $20 million from Integrated Asset Management, existing investors

LiveMint logoLiveMint 05-07-2017 Yuvraj Malik

New Delhi: Automobiles marketplace Droom said on Wednesday it has raised $20 million from investors led by Integrated Asset Management Asia Ltd, a Hong Kong-based private investment office in a Series-C funding round.

Existing investors Digital Garage, Lightbox, Beenext and Beenos Partners too participated in the round, the company said, taking the total capital raised by the company to $65 million.

Following the fund infusion, the shareholding of institutional and angel investors has risen to almost 50%, Droom founder and chief executive Sandeep Aggarwal told Mint. The rest is with the founders and employees.

ALSO READ: Online auto marketplace Droom to spend Rs225 crore in ad blitz

Droom raised a $25-35 million Series-B round last year, led by Singapore-based early stage technology fund Beenext and Japan’s start-up investment and incubation firm Digital Garage.

“When we raised Series-B, we diluted high single-digit percentage, and this time it is low single-digit dilution,” Aggarwal said, adding Lightbox continues to be the largest institutional investor in Droom, followed by Beenext and Beenos Partners. He declined to comment on the company’s valuation.

“India is the next China as far as consumer Internet is concerned. We are really impressed by Droom’s ability to drive innovation, create scalable technology platforms, and capture the growth of the Indian automobile industry,” Jeffrey Yam from Integrated Asset Management said in a press release issued by Droom.

Started in 2014, Droom is an online marketplace to buy and sell cars and two-wheelers. Over the last few years, it has branched into allied services like fair value calculator, roadside assistance and auto loans in a bid to increase revenue.

Aggarwal said much of the fresh capital will be used to build on its technology platform and drive greater adoption of various tools and services on Droom. Some of the services it launched recently are: Vehicle price calculating engine Orange Book Value, vehicle inspection service Eco and a data repository for used vehicles called Droom History.

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The company is exploring various monetization opportunities for these services, which accounts for about 10% of its revenue. “We are in an early stage on monetization. Once people start adopting it (the services), we will find other ways to monetize it,” Aggarwal said.

Aggarwal said Droom expects to close the current financial year ending March with sales of Rs175 crore and expects to make profits by the middle of next year. Droom is also looking at a listing on the Nasdaq stock exchange in the US by mid-2019, he said.

Droom on Monday said it will spend Rs225 crore on advertising this year.

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