Droom, the online marketplace for used automobiles, is expected to raise between Rs 100-200 crore in the next six months, Sandeep Aggarwal, CEO told FE. In July, the company raised Rs 100 crore from Lightbox Ventures and Beenos, a Japanese internet investment firm. Other players in the space include Carwale, Cardekho, and CarTrade, GetCarXpert, and Carzonrent.
In FY15, the company reported revenues of Rs 93 lakh but higher expenses of Rs 3.1 crore, resulted in a loss of Rs 2.2 crore. Aggarwal, who also founded Shopcues, said Droom would register a gross merchandise value( GMV) of Rs 3,000 crore by March 2017 from Rs 800 crore at the end of March 2016.
The online platform launched its rental services in August and earns a commission of 10%; it has tied up with about 15 rental services and does not hold any inventory of its own. Droom does not charge a listing fee from sellers but earns a premium for its specialised services under the pro seller premium package.
“We have 300 pro sellers listed on our platform and they pay us R15,000 annually as pro seller premium,” said Aggarwal explaining the seller can feature a logo, description, prescribed dealership with a brand or rating and a review.
Aggarwal said the sale of services such as insurance and maintenance fetch the highest commissions of 12% while it earns 1.5% on sale of cars and 2% on two-wheelers.
In February, the company clocked 2,300 transactions across services. “We did roughly R56 crore of gross revenues on our platform or R650 crore annualised revenues,” he added.
In March, the online platform launched its Eco car inspection app to promote verification and certified valuation of the automobile by a team of experts. The company has tied-up with Carnation Auto to leverage technology and get car technicians on board. These technicians can earn up R30,000 per month by becoming a part of Droom’s Eco app.
With its foray in services, the company plans to launch Droom History in July, an online automobile repository that will solve the problem of trust and transparency in automobile purchase, said Aggarwal adding it will be a paid product.