Droom Fundraises $200 Million in the First Pre-IPO Round, Enters the Unicorn Club

By Angel One | Published on 4th August 2021 | 33

Droom Fundraises $200 Million in the First Pre-IPO Round, Enters the Unicorn Club

Droom, the popular online marketplace for automobiles, acquired $200 million in its first pre-initial public offer fundraising round. Resultantly, this company is valued at $1.2 billion, making it a new entrant at the unicorn club.

Per the latest reports, Droom plans to go public in 2022. We can expect this company to get listed either at NASDAQ or the Indian stock exchanges.

How will Droom Use Funds Raised during this Pre-IPO Round?

It is expected that the online automobile marketplace will use the funds in these ways –

  • Fund market expansion
  • Boost its visibility in the leading 100 cities across the globe
  • Strengthen the last-minute delivery service

Investors of Pre-IPO Financial Round

This pre-initial public offer funding round was backed by big names such as –

  • 57 Stars
  • Seven Train Ventures

This was the first time Droom has obtained funds from new investors based in the US.

Besides them, existing investors also poured in funds in the first pre-IPO round. Presently, external investors own as much as 60% of Droom’s stake.

Key Highlights of Droom – In a Nutshell

Droom is the largest auto-centric industry in the country and accounts for nearly 80% market share of the automotive e-commerce space.

Here are some of the most noteworthy highlights of this online automobile platform –

  • Droom has a listed inventory worth more than $15.7 billion.
  • It has a strong market presence in over 1,105 cities.
  • Droom boasts a selection of 1.1 million automobiles.
  • This company has a robust network of more than 20000 dealers.
  • It closely competes with market players, such as Cars24, in the segment of used cars.

Estimates reveal this company can penetrate the online space of buying and selling automobiles even further. The company pegs that its online transactions would reach 7% by 2025 from 0.7% currently.

Alongside these, Droom has a robust financial standing that works in its favour and continues to garner investors’ attention ahead of its IPO.

Financial Highlights of Droom

Droom is likely to touch gross merchandise value (GMV) of $2 billion in 2021. Moreover, the company has improved its growth trajectory compared to the last year.

Other than that, here are few noteworthy financial highlights of the company for the calendar year 2021 –

  • Net revenue of more than $65 million.
  • In Q1 of 2021, this company registered an 80% Y-o-Y growth.
  • In March 2021, Droom clocked more than Rs. 1000 crores in monthly gross merchandise value.

Collectively, these factors put Droom in a favourable position, making its upcoming public offer an attractive investment option for many.

Final Takeaway

The first fundraising round of this pre-IPO stage appears to be a success. However, the success of the IPO, in general, will depend largely on Droom’s market segment and moat.

To know more about the world of finance and upcoming IPOs, individuals can keep an eye on the Angel One Blogs.

 

Frequently Asked Questions

  1. When will Droom open its IPO for subscriptions?

Droom intends to launch its initial public offering by 2022. However, the company is yet to share its IPO timeline.

  1. Who is the registrar of Droom IPO?

The company is yet to appoint a registrar for this upcoming initial public offer.

  1. Who are the lead managers of the Droom IPO?

Droom is yet to release any concrete information on this matter.

  1. Where will Droom list its IPO shares?

Droom is likely to list its IPO shares either on NASDAQ or leading Indian stock exchanges.