NEW DELHI: Droom, the used-car selling company, will become profitable in 2017, founder Sandeep Aggarwal said. The move is likely to come as a relief to investors, with most Indian startups struggling to show profits.
In the last five months, more than 20 startups have shut shop, and many more are struggling to raise capital. Amid all this, Droom has raised $33 million (around ` 200 crore) in its fourth round of funding, so far the largest series-B funding in 2016.
This money, Aggarwal said, is enough to take Droom beyond the loss-making stage. “When we had made our business plan, we knew that we did not need more than $25 million to turn profitable.”
Droom has raised about $50 million so far since its inception in 2014.
Sid Talwar, managing director of Lightbox Ventures, said Aggarwal is perhaps the best entrepreneur when it comes to delivering return-on-investment.
But, Aggarwal has competition in the form of CarDekho, CarTrade, OLX and Quickr. There are also a bunch of startups, including GoZomoo, Trubill, Car24 and Credr.
Droom is a marketplace. It helps in purchasing a car on its platform, and ensures the quality and condition of the used car based on 43 parametres.
Until September, Droom was limited to the National Capital Region (NCR), but now sells in 142 cities in India, and is also going international. It sells 90 cars every day, and 800 other services, such as, insurance and car services.
Soon, Aggarwal will launch something called the Droom History, which will be the largest repository of used-cars information — insurance, auto loans, policy records and accidental claim, service logs, sales data from carmakers and government data.
According to Aggarwal, the online used-car market raked in $350 million in revenues in 2015-16, with Droom earning $160 million.