Droom Raises $2.9M as IPO Approaches

India-based automotive marketplace Droom has successfully raised $2.9 million ahead of its anticipated Initial Public Offering (IPO). The funding round was led by Finvolve along with contributions from IA Growth Opportunities Fund II and angel investor Rameshchandra Shah, marking another step forward for the company as it reignites its IPO ambitions, initially set for completion in 2019. Droom issued 1,562,500 preference shares at an issue price of INR160 each, pulling in investors such as Prudent Corporate Advisory’s CEO, Shirish Patel, and other angel investors. The post-money valuation of Droom stands at approximately $360 million, a drop from the previous valuation of $1.2 billion during a $200 million funding round in 2021. CEO Sandeep Aggarwal emphasizes that the decision to keep the valuation low was strategic, aimed at allowing domestic investors to gain significant returns. The funds will be utilized for general corporate purposes as the company prepares to file its draft red-herring prospectus. Meanwhile, Droom is working towards transforming itself into a technology-centric firm with new offerings such as MyDroom and GoDigital, while also significantly cutting down its net losses by 34.9% for the year ending March 2024.