IPO-bound used car marketplace Droom has secured ₹25 crore ($2.9 million) in a new funding round co-led by Finvolve, IA Growth Opportunities Fund II, and Rameshchandra Shah.
The round also saw participation from individual investors, including Rajkumar Sorathi, Hardik Kothiya, and Shirish Patel.
According to regulatory filings sourced from the Registrar of Companies (RoC), Droom’s board approved a special resolution to issue 15,62,500 preference shares at ₹160 each, raising the capital.
Finvolve, IA Growth Opportunities Fund II, and Shah are each contributing ₹5 crore, while Shirish Patel, CEO of Prudent Corporate Advisory, is investing ₹3 crore. The remaining amount will come from other investors.
The funds will be allocated toward general corporate purposes. Following the allotment, Gurugram-based Droom is expected to reach a valuation of approximately ₹3,097 crore ($360 million)
Also Read : Neural Defend Raises $600K Pre-Seed Funding Led by IPV
Sandeep Aggarwal, Founder and CEO of Droom, commented on the valuation strategy, stating,
“We deliberately kept the valuation very low for the Indian subsidiary as a strategic move to give material upside to Indians who did not have the opportunity to participate in Droom’s growth over the past decade. We plan to raise more capital soon at a much higher valuation in both Singapore and India.”
Founded in 2014, Droom operates an online marketplace for used vehicles, including cars, motorcycles, and electric vehicles, along with rental services.
To date, the company has raised approximately $330 million from investors such as 57 Stars, Seven Train Ventures, Lightbox, and Beenext.
The firm reported ₹85 crore in revenue for FY24, marking a 66% decline from ₹253 crore in FY23. However, it managed to cut losses by 35%, reducing them to ₹40 crore in FY24.
Droom is reportedly preparing to file draft papers for a ₹1,000 crore IPO in 2027, aiming for a valuation between $1.2 billion and $1.5 billion.
