Droom seeks $50m as investors question valuation

Droom, an online automobile marketplace based in Gurugram, India, is looking to raise between US$20 million and US$50 million as it hopes to turn profitable this fiscal year, founder Sandeep Aggarwal tells Tech in Asia in an exclusive interview. The fiscal year in the country ends every March 31.

A few investors, however, say Droom’s first ask was smaller. Its pitch deck reportedly says it seeks US$19 million at a pre-money valuation of US$430 million.

Founded in 2014, Droom’s valuation has moved sharply over the years. It was valued at about US$200 million in 2016, a growth phase marked by the launch of key products like vehicle inspection app Eco and used-vehicle pricing tool Orange Book Value (OBV). Its valuation then climbed to a high of US$1.2 billion in 2021, when the company filed for a US$360 million IPO, as per data from Traxcn.

Droom founder Sandeep Aggarwal / Photo credit: Droom

That IPO was later withdrawn, with investors saying it was due to a sluggish market post-Covid. Droom’s valuation had fallen to about US$361 million by March 2025, when it raised US$3 million from India Accelerator and Finvolve, among other investors.

Droom now plans to try again for an IPO in 2027. The firm’s current valuation of US$430 million, though lower than the IPO peak of US$1.2 billion, is still too high, according to an investor who asked not to be named.

“Its contribution margin – profit after direct costs – is US$720,000,” the investor says. “That’s a valuation multiple of 600x. It’s insane.”

The valuation debate comes as Droom remains heavily dependent on India’s used-car market. The online marketplace mainly deals with secondhand cars, which account for 95% of the platform’s gross merchandise value (GMV). Meanwhile, two- and three-wheeler vehicles make up the remaining 5% sales on the platform.

Droom says it plans to break into the new vehicles market. Currently, used vehicles account for about 98% of its transactions, while new vehicles make up 2%. The company also plans to expand further into the two- and three-wheeler market.

Sandeep says the fresh capital will be used to drive growth, noting that the firm is targeting an increase of 60% to 80% in the next three years, as well as an EBITDA margin of 35%.

“We’ve spent the last 11 years building digital infrastructure,” he tells Tech in Asia. “Now we’re shifting our focus to monetization.”

Droom’s monthly GMV is currently at US$53 million. It sells roughly 1,500 cars per month at an average price of US$32,000 per vehicle, according to Sandeep.

The founder adds that in March, Droom generated around US$2.85 million in monthly revenue at a take rate of roughly 5%. He also says its gross profit margins were around 90% after payment processing fees and inspection costs.

However, investors tracking Droom have expressed concern about the company’s large marketing and operating expenses despite its high gross margins.