Droom raises $20 million from Integrated Asset Management, others
Droom CEO Sandeep Aggarwal says the funding will be used to bolster its technology platform and drive greater adoption of various tools and services on offer
New Delhi: Automobiles marketplace Droom said on Wednesday it has raised $20 million from investors led by Integrated Asset Management Asia Ltd, a Hong Kong-based private investment office, in a Series C funding round.
Existing investors Digital Garage, Lightbox, Beenext and Beenos Partners too, participated, the firm said, taking the total capital raised by the company to $65 million.
Following the fund infusion, the shareholding of institutional and angel investors has risen to almost 50%, Droom founder and chief executive Sandeep Aggarwal told Mint. The rest is with the founders and employees.
Droom raised a $25-35 million Series B round last year, led by Singapore-based early stage tech fund Beenext and Japan’s start-up investment and incubation firm Digital Garage.
“When we raised Series B, we diluted high single-digit percentage, and this time it is low single-digit dilution,” Aggarwal said, adding Lightbox continues to be the largest institutional investor in Droom, followed by Beenext and Beenos Partners. He declined to comment on the company’s valuation.
“India is the next China as far as consumer Internet is concerned. We are really impressed by Droom’s ability to drive innovation, create scalable technology platforms, and capture growth of the Indian automobile industry,” Jeffrey Yam from Integrated Asset Management said in a press release issued by Droom.
Started in 2014, Droom is an online marketplace to buy and sell cars and two-wheelers. In the past few years, it has branched into allied services like fair value calculator, roadside assistance and auto loans in a bid to increase revenue.
Aggarwal said much of the fresh capital will be used to build on its technology platform and drive greater adoption of various tools and services on Droom. Some services it launched recently are: vehicle price calculating engine Orange Book Value, vehicle inspection service Eco and a data repository for used vehicles called Droom History.
The firm is exploring various monetisation opportunities for these services, which accounts for about 10% of its revenue. “We are in an early stage on monetisation. Once people start adopting it (the services), we will find other ways to monetise it,” Aggarwal said.
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