India-based used-car marketplace Droom posted consolidated revenue of $47.4 million U.S. for the 12 months to March 2022 (FY21-22).

According to Registrar Of Companies (RoC) filings accessed by YourStory, Droom’s revenue grew by 188% year on year (y-o-y). The Gurugram-headquartered company’s expenses rose by 158% y-o-y to $64.1 million, due to the impairment of financial assets and costs attributed to advertising and promotions, it said. As a result, Droom consolidated loss almost doubled to $16.6 million, from $8.4 million in FY20-21.

In a draft red herring prospectus (DRHP) filed for a planned $400 million IPO in November 2021, the marketplace was optimistic about becoming profitable in the near term, but those hopes have been dashed. In October 2022, Droom withdrew the DRHP without making an official statement. A company representative later told the AIM Group that it was “biding its time and watching the market closely.”

According to a source quoted by the Economic Times, Droom is now considering holding an IPO in the second half of 2024. The company is likely banking on an improved performance in FY22-23 (the 12 months to March 2023) to support this. After it files its accounts with RoC for FY22-23, Droom could issue another DRHP.

Founded in 2014, Droom works with more than 21,800 used-car dealers and has a presence in nearly 1,100 cities. Operating a hybrid model of classifieds and b-to-c, the company has expanded to Singapore, Malaysia and Thailand. Its investors include Digital Garage and Toyota Tsusho Corp. It launched SaaS software suite Droom Cloud Services in April.

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