Just recently the online car marketplace Droom finalized $30 million of funds through a Series E round, only five months after getting nearly $30 million through a Series D round.
The twin fundraisers in 2018 mean that Droom has now raised around $125 million since chief executive officer Sandeep Aggarwal founded the company in 2014.
Along the way, it has assembled a large pool of investors, ranging from a unit of automobile major Toyota to venture capital firm Lightbox, which is know to be selective. It is also backed by Asia-focused investors such as Ellison investments, Integrated Asset Management Asia, Beenext, Beenos, and Digital Garage.
All this coupled with rapid growth has fueled Doom's ambitions of going public in the next couple of yeas.
If you ask Aggarwal, diversification is perhaps Droom's biggest asset. The Guugram-headquartered company operates in a space which ha several well-funded players such as Cars24, CarDekho and CarTrade. But Droom's focus on a segment which has fewer wheels but significantly higher volumes is giving it a leg-up.
"Most of the companies in this space cater to cars. In India, we sell 3 million new cars and 4.5 million used cars which brings us to a total of 7.5 million." Aggarwal told techCircle. "But on the other hand, we sell 18 million two-wheleers and 27 million used two-wheeler for a total of 45 million. So with the horizontal business model, we are talking of a market that is six times bigger."
While announcing its fundraiser last week, Droom claimed to have 75% share in the online automobile transaction market, generating close to $750 million in gross revenue. It aims to double its gross merchandise value - GMV, total value of goods and services sold - to $1.4 billion by the end of 2018 and $3.5 billion by 2019.
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