Operating revenue at India-based automotive marketplace Droom plunged by 34% year on year (y-o-y) to INR2.5 billion ($30.5 million U.S.) in the 12 months to March 2023 (FY22-23), Inc42 reports.

However, the company’s expenses declined at an even faster rate — by 38% to INR3.2 billion. Employee benefits — the company’s second-biggest expense, behind advertising, was slashed by 56%.

As a result, Droom’s net loss fell by 55% y-o-y to INR621 million from NR1.3 billion in FY21-22.

This improved performance is likely to boost the company’s plan for an IPO next year. A previous plan to go public was abandoned in October 2022, with founder Sandeep Aggarwal telling the AIM Group at the time that Droom would “bide its time and watch the markets closely.”

Founded in 2014, Droom says it works with more than 21,800 used-car dealers and has a presence in nearly 1,174 cities and an inventory of 290,000 vehicles. Commission and subscription services are its main sources of revenue. It launched SaaS Droom Cloud Services in April 2023.

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