Automobile marketplace Droom has posted an impressive growth rate of 21 percent in sales for the first quarter of FY2019-20.

According to Financial Express, Droom saw a13.3 percent rise in gross merchandise value (GMV) during the same period. The company claims to be generating an annualized GMV of $1.2 billion — the third-largest for an e-commerce company in India.

On an annual run-rate basis, Droom is raking in $35 million in net revenue and growing at a year-over-year rate of 150 percent. The Gurugram-based company is targeting $2 billion in GMV and $55 million in net revenue by December 2019. It’s hoping for $3.5 billion in GMV and $120 million in net revenue by the end of 2020. Droom is also preparing for an IPO by the end of this year.

Having gained significant traction in tier-1 Indian cities like Bengaluru, Delhi, Hyderabad, Mumbai, and Delhi, Droom has set its sights on tier-2 cities like Ludhiana, Surat, and Jaipur, among others. The company is actively focused on international expansion with operations well underway in Thailand and Malaysia, among other Southeast Asian countries.

Commenting on the results, CEO and Founder Sandeep Aggarwal said the automobile industry is experiencing a visible slowdown brought on by rising automobile prices and higher interest costs. In the face of such conditions, Droom’s growth further reflects the positive reaction created by its diverse products.

 

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