World's Largest Automaker Toyota Led $30 Mn Funding in Gurgaon-based Droom

In its first India investment, world's largest automaker Toyota, through its subsidiary Toyota Tsusho Corp, has led a $30 million (~ Rs 203 crore) in Series D equity financing round of Droom, a Gurgaon-based online marketplace for used automobiles and auto services. The financing round was also co-led by Japanese incubator and venture capital investor Digital Garage, who is an existing investor in Droom.

Other investors who participated in the round include existing investors Ellison Investments along with several institutional investors and family offices from China, Hong Kong and South East Asia.

Notably, Droom has also signed a Memorandum of Understanding (MoU) with Toyota to expand its services overseas to markets such as Indonesia and Thailand.

Droom will utilize the freshly raised funds to boost its market share, which it claimed stands at 70%. It added that it tech-led platform will also invest heavily in further developing its artificial intelligence and machine learning capabilities.

Till date, Droom has raised about $95 million in equity financing and competes with the likes of Temasek and Warburg Pincus-backed CarTrade and Google Capital and Hillhouse Capital-backed CarDekho.

Founded in June 2014 by Sandeep Aggarwal, Droom claims to be India's first and mobile first marketplace to buy and sell used and new automobiles. Prior to this funding, the startup last raised $20 million in its Series C round led by Integrated Asset Management and Digital Garage.

“Droom has seen tremendous growth over the past three and half years in terms of adoption by buyers and sellers, number of categories and listings, geographical presence and GMV of transactions. This partnership (with Toyota) will play a major role for Droom as we realize our growth potential, both in India and internationally,” said Sandeep Aggarwal, Founder & CEO, Droom.

The company claims to generate about $700 million in gross revenue and $15 million in net revenue. The platform has about 250,000 auto dealers across over 500 cities in India.

"We were impressed that Droom has rapidly established its leadership position as the largest online marketplace to buy and sell automobiles in India. We believe that this partnership contributes to the establishment of highly transparent transaction of automotive and the wholesome development of auto market of any developing countries, by combining Droom’s technologically advanced platform and our various automotive business experience of all over the world," said a spokesperson for Toyota Tsusho Corporation.

The expansion will help Droom double its gross merchandise value to $1.4 billion by the end of 2018 and $3.5 billion by 2019. Droom is also targeting a public listing through an IPO by the end of 2019.

Source - ET Tech

World's Largest Automaker Toyota Led $30 Mn Funding in Gurgaon-based Droom

In its first India investment, world's largest automaker Toyota, through its subsidiary Toyota Tsusho Corp, has led a $30 million (~ Rs 203 crore) in Series D equity financing round of Droom, a Gurgaon-based online marketplace for used automobiles and auto services. The financing round was also co-led by Japanese incubator and venture capital investor Digital Garage, who is an existing investor in Droom.

Other investors who participated in the round include existing investors Ellison Investments along with several institutional investors and family offices from China, Hong Kong and South East Asia.

Notably, Droom has also signed a Memorandum of Understanding (MoU) with Toyota to expand its services overseas to markets such as Indonesia and Thailand.

Droom will utilize the freshly raised funds to boost its market share, which it claimed stands at 70%. It added that it tech-led platform will also invest heavily in further developing its artificial intelligence and machine learning capabilities.

Till date, Droom has raised about $95 million in equity financing and competes with the likes of Temasek and Warburg Pincus-backed CarTrade and Google Capital and Hillhouse Capital-backed CarDekho.

Founded in June 2014 by Sandeep Aggarwal, Droom claims to be India's first and mobile first marketplace to buy and sell used and new automobiles. Prior to this funding, the startup last raised $20 million in its Series C round led by Integrated Asset Management and Digital Garage.

“Droom has seen tremendous growth over the past three and half years in terms of adoption by buyers and sellers, number of categories and listings, geographical presence and GMV of transactions. This partnership (with Toyota) will play a major role for Droom as we realize our growth potential, both in India and internationally,” said Sandeep Aggarwal, Founder & CEO, Droom.

The company claims to generate about $700 million in gross revenue and $15 million in net revenue. The platform has about 250,000 auto dealers across over 500 cities in India.

"We were impressed that Droom has rapidly established its leadership position as the largest online marketplace to buy and sell automobiles in India. We believe that this partnership contributes to the establishment of highly transparent transaction of automotive and the wholesome development of auto market of any developing countries, by combining Droom’s technologically advanced platform and our various automotive business experience of all over the world," said a spokesperson for Toyota Tsusho Corporation.

The expansion will help Droom double its gross merchandise value to $1.4 billion by the end of 2018 and $3.5 billion by 2019. Droom is also targeting a public listing through an IPO by the end of 2019.

Source - ET Tech

Droom Bags Series B Funding Led by BEENEXT from Singapore and Digital Garage from Japan

Droom, India’s pioneering online automobile transactional marketplace, has announced the closing of its Series B funding in a round led by BEENEXT from Singapore and Digital Garage from Japan. Majority of existing investors are participating in the current round including Lightbox and BEENOS.  The fresh funds will be used to further strengthen the dominating position in the online market for automobile in India, continue to make platform more scalable and functionally rich, and expand internationally.   The amount raised for the new round of funding is significantly higher than the Series A, Droom raised in July 2015.

Droom with a presence in 142 cities has the largest reach in the hyper-local category in India and will use the fresh funding to further grow in the local markets and expand presence across international geographies. The latest round will see the Gurgaon headquartered company use the proceeds to create a larger sales team, adding more business lines, boosting its technology platform with a focus on creating a richer consumer experience.

Speaking on the development, Sandeep Aggarwal, Founder & CEO, Droom, said, “We have been witnessing tremendous growth over the past 16 months in terms of adoption by sellers, number of categories and listings, geographical presence in 142 cities across in India, and GMV/transactions.  Droom is permanently changing how automobiles should be bought and sold online by creating tools for 21^st century for trust, transparency, pricing and convenience.  We are very delighted that BEENEXT and Digital Garage have liked Droom journey so far and the future potential and decided to lead the round.”

Speaking on the occasion, Teruhide Sato, Founder and managing partner, BEENEXT said, “Droom has swiftly established its leadership position as the premium digital marketplace to buy and sell automobiles in India.  Sandeep is an exceptional founder and his vision, grip on marketplaces and ability to drive innovations are second to none.  We supported him and Droom fairly early on and have seen tremendous growth and disruption Droom has brought to the market.”

Adding to the same, Kaoru Hayashi, President and Group CEO, Digital Garage, added, “What Sandeep and the entire team at Droom have been able to do in such a short span of time is extremely impressive and is the main reason why we have handpicked Droom for investment. We are confident that our investment, coupled with its differentiated approach and disruptive business model, will continue driving its spectacular growth trajectory in the future as well.”

Through the funding and the ongoing support of investors, Droom, aims to cement their position in India as the ultimate automobile marketplace. To materialize this, the company will also see an infusion of funds towards marketing, business development, customer acquisition (operations) and new category expansions.