Droom eyes $200 million funds

Droom Technology, an automobile marketplace and auto services company, is raising $200 million in its latest funding round, potentially valuing the venture at more than $1 billion.
The company is in talks with a number of financial and strategic players for the new equity financing, with global merchant bank Credit Suisse mandated to scout for fresh investors. Aggarwal told ET that the financing round was likely to be the last before Droom files for an IPO on the Nasdaq in the first half of 2021.
The CEO, however, declined to disclose the names of potential investors.
“We are currently at $35 million in net revenue on an annualised basis, on GMV of $1.3 billion, and are targeting an exit of $3.5 billion in gross sales and $120 million in net revenue by December 2020. This will be the level where company would like to be listed as public company,” Aggarwal said.
According to him, the company’s existing set of investors, which include venture capital firm Lightbox, Beenext and a host of Chinese-origin family offices, among others, will invest $20-$30 million in the upcoming round. The first tranche is expected to come by end-July.
The developments come at a time when companies operating in the country’s broader online auto sector have either already raised, or are in the market to raise fresh capital from investors.
In May, ET reported that Cars24 was in the final stages of closing a fresh equity-financing round, estimated at $70-$80 million, while Yellow Drive Technologies, which owns and operates used car retailing platform Spinny raised a shade more than $13 million in a mix of equity and debt financing, led by SAIF Partners and Accel Partners.

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