Revenue generation under Droom Credit is intended to work under three models - processing fee from borrower and lender of `999 each and take 1-4% of the loan value from the lender. According to Droom founder and CEO, Sandeep Aggarwal, the company should garner 20% of its revenue from Droom Credit by end of March 31, 2019.
Droom's other non-transactional revenue streams are: advertising for brand and manufacturers, pre-seller premium subscription for dealers, pricing engine Orange Book Value and inspection report Eco.
The credit risk management engine used by Droom Credit to analyze credit worthiness for the loan, is an algorithm-based system which will use applicant information such as Aadhaar, PAN, income statement authentication, among others.
Aggarwal recently came back from China and Hong Kong where a significant amount of interest stems for the auto portal. Droom is looking to raise the next round of funding from the region, "We did an investor day in Hong Kong. We are thinking of raising around $50 million," said Aggarwal.
Founded in Silicon Valley just three years ago, Droom is currently it is the fifth largest e-commerce company in terms of gross merchandise value (GMV) if major travel portals are not taken into account, and according to Aggarwal, it should become a billion dollar valuation company by the end of this year.