New Delhi [India], Nov 30 (ANI
): India's pioneering online automobile transactional marketplace Droom is aiming to double its annualized sales and gross merchandise value from about Rs. 1,500 crore to Rs. 2,500-3,000 crore by March 2017 and Rs. 5,000 crore by December 2017.
The company has also announced that hitting this target will result in a proportional enhancement in net revenue from Rs. 60-75 crore to Rs. 125 crore-Rs. 150 crore.
Droom's four different revenue streams will help the company achieve its target. These include its core transactional platform of vehicle transactions, premium subscription charges, advertising and selling of products and services developed in-house, such as its highly popular algorithmic pricing engine Orange Book Value, auto inspection-verification service provider ECO and Quick Sell. Moreover, Droom's consumer-to-consumer sales will be a major contributor to the increased revenue rather than business-to-consumer transactions going forward.
"Our services have generated healthy revenue, with more than 15 percent of our sellers having signed on for the subscription services and we expect these figures to increase to 40 percent by December 2017. By December 2017, we expect to achieve annualized gross sales of Rs. 4,500-5,000 crore, with a net revenue projected at about Rs. 125-150 crore. Interestingly, C2C has been a bright spot for us lately, and we see it as a significant contributor to our balance sheet," said Founder and CEO Droom, Sandeep Aggarwal.
Droom is also already in talks with potential investors to raise USD 50 million in its next round of funding, estimated to close early next year. It has already raised about USD 45 million across four rounds, from a clutch of investors, including venture capital firms Lightbox and Beenext, ecommerce operator Beenos
's Digital Garage
, Hong Kong
-based investment company Integrated Asset Management, and Axis Capital
. With next round of funding, the company also plans to expand South East Asian countries.
India's domestic automobile sector has grown immensely to emerge as the third largest in the world, valued at about USD 125 billion, with an expected jump of USD 75 billion by 2020. Droom's vision is to create, promote and increase share of the online segment in automobile transactions, which presently is at one percent of the overall figure. Expected to grow until eight percent over the next three to four years, Droom
's strategic decisions are bound to help the organization scale the heights of success and for the sector to boom at large. (ANI