Online auto marketplace Droom has earmarked $8 million for international expansion till next calender year. It has created Droom International which is involved in market mapping and sizing, apart from others, says Sandeep Aggarwal, Founder & CEO, Droom.in. “For many countries our technologies are ready for the launch,” he says. It will enter Malaysia and Thailand soon, he says.
It recently announced raising $30 million in Series D, led by Toyota Tsusho Corporation (member Toyota Group) and co-led by Digital Garage of Japan.
In the past three years, it has acquired 70 per cent of the online automobile market share in India, generating close to $700 million in gross revenue and $15 million in net revenue with the listed GMV of $3.5bn. Droom has also proved its position as largest online automobile marketplace in India with close to 250k auto dealers in more than 500 cities on its platform and 27.3 million monthly visitors. The company aims to double its gross merchandise value to $1.4bn by end of 2018 and $3.5bn by 2019. The company plans to go for an IPO by end of 2019.
It is looking at expanding in specific areas, that includes Droom – the core marketplace, certification services to buy used vehicles, loan and insurance services, and Droom Enterprise that caters to cab aggregators like Ola and Uber.
“We have built the most sophisticated platform for C2B – where a consumer sells a vehicle to a dealer and we have a new version for quick sale – giving certification services, presenting the listing to 250K dealers working with us, which is 10 times larger than any other internet company,” says Aggarwal.
Droom credit is another area of fintech product where it aims to give auto financing through credit rolling engine.
It is spending Rs 400 cr in advertising and campaign. “Most of its campaigns revolve around the idea of pride and joy of owning a pre-owned vehicle. Contract is doing the advertising campaign.
We started our first campaign in December 2015. We have spent about Rs 1000 crore over last four years in some of these campaigns,” recalls Aggarwal.
While the platform is present in 520 cities its main business comes from first 15. Through aggressive campaigns it will target the next 25 cities and consumers who are withing the age group of 18-35 years, he adds.