Droom, which claimed to be the third largest e-commerce company in India in terms of GMV, expects Malaysia and Singapore to contribute 5 per cent of its total revenue in 2019.
Toyota Group-backed online automobile marketplace has crossed 2 million-mark of unique monthly visitors in its two new markets, Malaysia and Singapore, combined in February 2018.
Droom, which has 43.5 million monthly traffic in India, launched in Malaysia in October last year while Singapore business was started in December, its Founder and CEO Sandeep Aggarwal told Financial Express Online.
“In Malaysia, we crossed 1 million-mark last month and is currently having around 1.2 million monthly visitors whereas Singapore does 500,000 monthly visitors,” Aggarwal said.
Droom, which claimed to be the third largest e-commerce company in India in terms of gross merchandise volume (GMV), expects Malaysia and Singapore to contribute 5 per cent of its total revenue in 2019. Droom’s current annual run rate stands at $1.1 billion GMV even as its net revenue is $25 million.
“In terms of monthly traffic we expect to have 3.5-5 million from Malaysia and around 1.5 million from Singapore by end of this year,” Aggarwal added. The startup currently serves more than 735 cities in India.
The startup is aiming at $2 billion GMV along with $50 million net revenue by end of 2019.
Aggarwal had earlier hinted towards a possible listing on the Nasdaq exchange in the second half of 2020. “Exact timing, how much capital we will raise etc., will be decided in nine months before the planned listing. We are working with some bankers as well for this,” Aggarwal said in December last year.
The public listing would also give 150 of 360 employees at Droom having stock option to convert their sweat equity into capital.
Over the years, apart from Droom, multiple Indian startups including Flipkart, InMobi, Grofers, Freshworks, Druva, Grey Orange, Crayon Data have moved outside India for better fundraising, listing, and tax environment. “A Singapore-based company can be listed on Nasdaq whereas if you are based in India then you have to list on one of the Indian stock exchanges to list outside India,” Aggarwal said.