Droom

Last updated
Droom Technology Limited
Type Public
IndustryAutomotive e-commerce
Founded2014
FounderSandeep Aggarwal
Rishab Malik
Headquarters
Gurugram
,
India
RevenueDecrease2.svg₹136 crore (US$17 million) (FY21) [1]
Decrease2.svg₹−69 crore (US$−8.6 million) (FY21) [1]
Website www.droom.in

Droom Technology Limited is an Indian company that maintains an online marketplace for buying and selling used and new automobiles. [2] Founded in April 2014, the company is based in Gurugram, Haryana and also operates in Singapore, Thailand, and Malaysia, [3] besides 1,161 Indian town and cities. [4] In July 2021, Droom became Unicorn after raising $200 Mn in a pre-IPO funding round at a valuation of $1.2 billion. [5]

Contents

History

Sandeep Aggarwal, who previously co-founded ShopClues together with Sanjay Sethi and Radhika Aggarwal, founded Droom with Rishab Malik in April 2014. The company was incorporated on 9 September 2014, and first launched in Delhi on 21 November 2014 as a platform for used cars. [6] [7] Later, the company also added the buying and selling features for used cars and two-wheelers on its site and by 2015, it had operations in 100 cities across India. [5]

In 2016, the company entererd into a partnership with CashCare and incorporatd the Orange Book value pricing engine into its platform that helps in determining the fair market value of used automobiles. [7] In December of the same year, the company introduced Droom History, a national repository for vehicle history which provides used vehicle history by generating a vehicle history report.

In 2017, the company launched Droom Credit for auto financing, Droom Discovery for vehicle research, and ECO in 2019 for vehicle inspection. [7]

In 2018, Droom became the official sponsor of the MTV reality TV show Roadies’ 16th edition. [8] In October, the company launched its platform in Malaysia, Singapore in December, and Thailand in April 2019. [7]

In December 2018, the company acquired Xeraphin Finvest in an all-cash deal. [9] In March 2020, the company launched its Droom Health with Germ Shield sanitization services to make vehicles virus-proof. In April 2020 it extended its Germ Shield technology to Gurugram police to sanitize its fleet of vehicles. [10] In October, Droom acquired Delhi-NCR-based AR startup Visiolab Ideas for an undisclosed amount. [11]

Initial public offering (IPO)

In November 2021, the company announced that it had filed for an IPO to raise up to Rs 3000 crore (around $361.296 million) and listing on Nasdaq, [12] [13] but withdrew its filing a year later in 2022, citing market conditions. [14] [15]

Finances

In 2015, Droom raised $16 million from Lightbox Ventures, followed by its Series B funding for an undisclosed sum led by Singapore-based investor Beenext and Japanese incubator and venture capital firm Digital Garage. In July 2017, the company raised $20 million in Series C funding round from Integrated Asset Management and existing investor Digital Garage. [16] In 2018, it secured $30 million in funding for a Series D round led by Toyota Tsusho Corporation of Toyota Group and co-led by Digital Garage. [2] The company raised $30 Mn in series E funding round. Droom raised $10 Million as part of a series F round of funding in 2019 from its Singapore Based holding entity. [17]

In July 2021, the company raised $200 million in Pre-IPO round funding led by 57 Stars and Seven Train Ventures. [18]

Controversy

In 2018, Cyber Security Researcher Sayaan Alam found a vulnerability in Droom API-vulnerability that exposed users' data like addresses, PAN cards, banking details, etc. Droom fixed the issue in December 2018. [19]

In 2013, the company founder, Sandeep Agarwal was charged by the United States Department of Justice (DoJ) and U.S. Securities and Exchange Commission (SEC) for insider trading when he was a Wall Street analyst. [20] In February 2020 all the charges were dropped by DoJ against him. SEC also reached a settlement with Sandeep. [3] [21]

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References

  1. 1 2 Dayalani, Vaishnavi (13 November 2021). "IPO-Bound Droom's Revenue Took A 25% Drubbing In FY21, Plummeted To INR 136 Cr". Inc42 Media. Retrieved 5 March 2023.
  2. 1 2 Balachandaran, Manu. "Droom: Stepping On The Gas". Forbes India. Retrieved 2023-02-18.
  3. 1 2 Mathur, Nandita (2020-02-19). "US justice dept drops insider trading charges against Droom's Sandeep Aggarwal". mint. Retrieved 2023-02-18.
  4. ↑ Mukherjee, Sharmistha (2022-08-29). "Droom Technology bets on four-fold demand in EVs by next three years". The Economic Times. ISSN   0013-0389 . Retrieved 2023-02-18.
  5. 1 2 "Automobile marketplace Droom gets pre-IPO funding at $1.2 billion valuation". The Economic Times. 2021-07-28. ISSN   0013-0389 . Retrieved 2023-02-18.
  6. ↑ "Riding high". Business Today. 2016-07-13. Retrieved 2023-02-18.
  7. 1 2 3 4 "Droom to foray into Thailand". The Times of India. 2019-04-26. ISSN   0971-8257 . Retrieved 2023-02-19.
  8. ↑ "Droom is the title sponsor for MTV Dropout". The Times of India. 2017-04-18. ISSN   0971-8257 . Retrieved 2023-02-18.
  9. ↑ Rawat, Aman (2019-11-03). "Droom Acquires NBFC Xeraphin To Boost Credit, Auto Loans Vertical". Inc42 Media. Retrieved 2023-02-18.
  10. ↑ "Droom Allocates Rs 1 Crore For CSR To Curb The Spread Of Virus With It s Germ Shield Coating". BW Defence. Retrieved 2023-02-18.
  11. ↑ "Droom acquires Visiolab Ideas". The Times of India. 2020-10-01. ISSN   0971-8257 . Retrieved 2023-02-18.
  12. ↑ Chengappa, Sangeetha (2021-03-24). "Droom aims to list on the NASDAQ in H2 of 2022". www.thehindubusinessline.com. Retrieved 2023-02-18.
  13. ↑ Dhanjal, Swaraj Singh (2021-09-19). "Droom looks to raise ₹1,000 cr from share sale early next year". mint. Retrieved 2023-02-18.
  14. ↑ "Droom withdraws IPO plans amid volatile market". VCCircle. Retrieved 2023-02-19.
  15. ↑ Gupta, Samie Modak & Aryaman (2022-10-28). "Boat joins PharmEasy, Droom to shelve listing plans amid valuation concerns". www.business-standard.com. Retrieved 2023-02-18.
  16. ↑ "Automobiles portal Droom raises $20 mn in Series C funding". VCCircle. Retrieved 2023-02-19.
  17. ↑ Mishra, Lalatendu (2021-07-27). "Droom to raise $200 mn in pre-IPO round". The Hindu. ISSN   0971-751X . Retrieved 2023-02-19.
  18. ↑ "Auto platform Droom joins unicorn club". The Times of India. 2021-07-29. ISSN   0971-8257 . Retrieved 2023-02-18.
  19. ↑ "Droom Fixes Security Flaw That Exposed Users' Private Data, Banking Details". Gadgets 360. Retrieved 2023-02-18.
  20. ↑ "Droom, a lesson in efficiency for startups". Business Insider. Retrieved 2023-02-18.
  21. ↑ Alawadhi, Neha (2020-02-19). "US DoJ drops charges against Droom founder in insider trading case". www.business-standard.com. Retrieved 2023-02-18.
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