Droom Technology Limited, a technology and data science driven online automobile ecommerce platform has filed preliminary papers with capital market regulator Sebi to raise funds through an initial share-sale.
With this move, it now becomes the second Indian automobile online company to go public after CarTrade.
- The initial public offering consists of equity shares of face value of Rs. 1 each of Droom Technology. The offer comprises of fresh issue of aggregating up to Rs 2,000 crore and an offer for sale of up to Rs 1,000 crore. The equity shares of the company will be listed on the BSE and NSE.
- As a part of the OFS, Droom Pte. Ltd, is the holding company based in Singapore, will sell up to Rs 1000 crore, according to the draft red herring prospectus (DRHP) filed with SEBI.
- Additionally, the company, in consultation with the lead bankers to the issue may consider a further issue of equity shares including a private placement aggregating up to Rs 400 crore. If such placement is completed, the fresh issue size will be reduced.
- The company intends to utilise the net proceeds from the fresh issue to fund organic and inorganic growth initiatives aggregating to Rs 1,150 crore and Rs 400 crore respectively and towards general corporate purposes.
Droom is a technology and data science company that facilitates automobile buying and selling online through a combination of their asset light ecommerce platform with a vertically integrated ecosystem of products and services for the automobile industry. With an international presence in Malaysia which commenced operations in 2018, and later expanding to 38 countries.
The Company is the only major Indian player with a completely online transactional model and offer one of the largest selection of automobiles amongst the major online players in India, according to a Grant Thornton Report with over 1.15 million vehicles listed that includes both used and new cars and two-wheelers, and other vehicles, as of September 30, 2021.
For the six months ended September 30, 2021, it has seen 89.27mn visits on its website/app, and has 20,725 Auto Dealers, present in 1,151 cities. It has 2,78,807 used vehicles in 11 categories listed valued at Rs.146.49 bn, and it sold 56,412 vehicles and has a GMV of Rs 59,347.25 mn
Droom is led by an experienced leadership team with significant industry experience. Sandeep Aggarwal, Founder, Promoter, Chairman, Whole-time Director and Chief Executive Officer, has over 20 years of experience in the technology and start-up space and has in the past founded, ShopClues.com, a leading Indian e-commerce platform. Akshay Singh is currently the CSO (Chief Strategy Officer) and Mohit Ahuja the Chief Marketing Officer.
The Indian automotive industry is currently the fifth-largest automotive industry and is expected to be the world’s third-largest automotive industry in terms of volume by Fiscal 2026, propelled by demographic drivers such as rising disposable income, growing middle class, urbanization and a growing preference for personal mobility. It is poised to grow at 17.3% CAGR from Fiscal 2021 to Fiscal 2026 to reach Rs 36,725 billion by Fiscal 2026.
ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Limited and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.
This news was shared to Prittle Prattle News via press release.
