India's online automobile e-commerce platform Droom has raised USD 20 million in its latest funding round spearheaded by Integrated Asset Management (IAM) and Digital Garage. Funding came from other existing institutional investors: Lightbox, Beenos and Beenext. The company has thus far raised USD 65 million, including from the latest instalment.
Droom founder and CEO Sandeep Aggarwal said that the funds will be used to strengthen the technology platform, tech-focussed acquisitions and strengthen Droom's brand portfolio as well as branding and marketing activities.
"We still have funds in bank from our last round. However, the excess capital will help drive growth," stated Aggarwal.
The company is also looking at listing on Nasdaq by the middle of 2019 and by then, Droom's GMV will touch about USD 2.5 billion, Aggarwal added.
GMV is a term used in online retailing to indicate the gross merchandise value of products sold through the marketplace over a certain period of time. It is often used as a reference by start-ups to showcase growth potential of the company and therefore, raise funds from investors.
However, investors are now more attentive towards factors like path to profitability and scalable business models rather than just GMV.