Droom, an online automobile transactional marketplace, has today said that it is aiming to double its annualized sales and gross merchandise value from about Rs 1,500 crore to Rs 2,500-3,000 crore by March 2017. Further, it said that it is targeting Rs 5,000 crore by December 2017.
The company has also announced that hitting this target will result in a proportional enhancement in net revenue from Rs 60-75 crore to Rs 125 crore – Rs 150 crore.
To achieve this target, the company is dependent on four different revenue streams, which includes its core platform of vehicle transactions, premium subscription charges, advertising and selling of products and services developed in-house. The startup has developed a few products such as an algorithmic pricing engine Orange Book Value, auto inspection-verification service provider ECO and Quick Sell.
Moreover, the company is expecting that its consumer-to-consumer sales will also be a major contributor to the increased revenue rather than business-to-consumer transactions going forward. Commenting on the estimated growth figures, Sandeep Aggarwal, Founder & CEO, Droom, said,
Our services have generated healthy revenue, with more than 15% of our sellers having signed on for the subscription services and we expect these figures to increase to 40% by December 2017. By December 2017, we expect to achieve annualized gross sales of INR 4,500-5,000 crore, with a net revenue projected at about INR 125-150 crore. Interestingly, C2C has been a bright spot for us lately, and we see it as a significant contributor to our balance sheet.
Droom is also currently in talks with potential investors to raise $50 million in its next round of funding, which is estimated to close early next year. The funding will be used by the company to expand its operations to South East Asian countries.
Till now, the company has raised about $45 million in four rounds, from a clutch of investors, including venture capital firms Lightbox and Beenext, ecommerce operator Beenos, Japan’s Digital Garage, Hong Kong-based investment company Integrated Asset Management, and Axis Capital.
As per Droom, the India’s domestic automobile sector has grown and emerged as the third largest in the world, valued at about $125 billion, with an expected jump of $75 billion by 2020.