Droom, an automobile marketplace founded in November 2014 by serial entrepreneur Sandeep Aggarwal, has nabbed 100 crores in the latest round of funding by Lightbox Ventures and Japanese internet firm Beenos.
The company is looking forward to expand its business in south-east Asian countries namely Philippines, Vietnam, Malaysia, Singapore, and Indonesia by early 2016. It is expecting to clock Rs 250 crore in GMV by the end of fiscal 2016 and reach Rs 800-1000 crore by 2017.
Droom currently features 13 automobile categories including auto services with 1,000 sellers and 6,000 listings and plans to add 20 automobile and 12 service categories, hosting over 50,000 sellers and 200,000 listings in the next 18-24 months.
It charges an online fee of about 2 % for customers in addition to a small cut out of the 2% from seller. It sells roughly 8-10 cars and 10 to 12 two wheelers per day and recorded about Rs 13 crore sales in the month of June with an average selling price of about Rs 2 lakh on the website.
India is the third largest automobile market in the world. So, we want to exploit this opportunity and utilize it for global expansion,”
said Sandeep Aggarwal who is also ex-CEO and founder of Shopclues.
He further added that the main factor which has contributed to the success of Droom is the “unparalleled” advantage for buyers on trust, pricing and selection” as opposed to the current online buying traditions which deliver an unsatisfactory and dubious experience devoid of regulation or a scientific approach.
Droom is finally disrupting an industry where user behavior hasn’t changed since the advent of the Internet in the country,
said Siddharth Talwar, partner, Lightbox.
It is noteworthy that Droom is the first entrepreneurial venture of Sandeep Aggarwal since he had to step down as CEO of Shopclues after the debacle of insider trading case involving one of the world’s largest hedge fund SAC Capital and its billionaire founder Steve Cohen.
He was found guilty of passing non-public information and turned witness for prosecution in the trial which is still continuing with a hearing due in the next few months.
I was worried about investors reception given my legal case, but I under-estimated the power of track record,
said Aggarwal who managed to rope in the same investors for Droom.
There are very few people who have been able to scale up an (online) marketplace beyond $100 million in gross merchandise value (GMV),” said Sidharth who was also an angel investor in Shopclues.
Japan’s Beenos was involved as an institutional investor in both Shopclues and Droom.