Gurgaon-based automobile marketplace Droom has raised $30 million in Series E funding led by the family office of Japanese investor and entrepreneur Joe Hirao. Another Japan-based family office fund also participated in this round of funding, however, the name of the fund remained undisclosed.
The current investment comes barely five months after when it last raised -million from Toyota Tsusho Corporation, a unit of Japan’s automobile major Toyota Group, and existing investor Digital Garage in May 2018. With the newly raised capital, Droom plans to boost its credit services to buyers and dealers. Besides, It also aims to improve its machine learning and artificial-intelligence capabilities for its products.
“The current series E funding gives an immense fillip to us as we aim to simultaneously strengthen and diversify our services such as inspection, Droom credit, C2C and C2B marketplace formats, enable a smooth online transaction and provide more competitive terms and interest rates to customers through Droom credit,” said Agarwal.
The startup is targeting loan disbursements worth Rs 150 crore through its own credit offerings ‘Droom Credit’ in FY19.
Droom was launched in 2014 by Sandeep Aggarwal, a co-founder of e-commerce firm ShopClues. The marketplace connects buyers and sellers to purchase and sell cars and two-wheelers online. The firm is registered in Singapore as Droom Pte Ltd and has a presence in India and the US market. The company has been also looking at international markets and soon it will be operational in Thailand and Malaysia.
At present, the domestic online automobile transaction market value is about $1 billion Droom claims to hold 75% share, generating close to $750 million in gross revenue and $20 million in net revenue. Further, the company aims to double its GMV to $1.4 billion by the end of 2018 and $3.5 billion by 2019.
The automobile marketplace Droom, which counts the likes of Japan’s Toyota Group, Beenext, Beenos and Digital Garage and Lightbox Ventures as its investors, has raised a total funding of $125 million (including current round) to date.
In the online used-automobiles segment, Droom competes with CarDekho, Truebil, CarTrade, Cars24, and CarWale.