Automobiles portal Droom secures $30 mn funding from Toyota, EI

Digital automobiles marketplace, Droom Technology Pvt. Ltd, has bagged $30 million (around Rs 204 crore) in a Series D round led by Toyota Tsusho Corporation, which is part of the Toyota Group, and existing investor Digital Garage of Japan.

The Gurugram-based company said in a statement that Ellison Investments, existing investors and several institutional investors and family offices from China, Hong Kong, and Southeast Asia had also participated in the round.

Droom said the fresh funds will be used to boost its market share, which it claimed stands at 70%. It added that it tech-led platform will also invest heavily in further developing its artificial intelligence and machine learning capabilities.

The company said in the statement that it plans to launch an initial public offering (IPO) next year.

Droom also signed a Memorandum of Understanding with Toyota Tsusho Corporation to expand internationally in Southeast Asia.

Droom had received $20 million last July in a Series C round led by Integrated Asset Management (Asia) Ltd and Digital Garage Inc.

Droom has already raised more than $90 million in external funding since its launch in April 2014. In July 2016, it had raised an undisclosed amount in a Series B round from venture capital fund Beenext, Japanese Internet Company Digital Garage, Lightbox and Beenos, besides others.

In the online used automobiles selling space, Droom competes with Truebil, Zoomo, CarDekho (which had acquired Gaadi.com), Carwale and CarTrade. Horizontal people-to-people platforms, such as OLX and Quikr, too, share the same space.