Digital Garage, Toyota lead $30m round for India's Droom
Digital Garage and Toyota Tsusho, a division of Japanese automotive giant Toyota Group, have co-led a $30 million Series D round for Indian used-car trading marketplace Droom.
Asian asset management firm Ellison Investments also participated in the round, along with additional unnamed institutional investors and family offices from Hong Kong, China, and Southeast Asia. Droom will use the new capital to strengthen its position in India’s online car marketplace sector and to expand its international presence.
The company has also signed an agreement with Toyota Tsusho that is expected to support its growth in emerging markets, particularly in Southeast Asia. The partnership will focus on providing consumers in these markets with more options and greater transparency when buying used cars and motorcycles.
“Droom has irrevocably changed how automobiles are bought and sold online by creating robust tech and AI-bases ecosystem services tools fit for the 21st century focused on elements such as trust, transparency, pricing, and convenience,” said Droom founder and CEO Sandeep Aggarwal in a statement. “This partnership will play a major role in Droom’s journey ahead by helping us realize our growth potential, both in India and internationally.”
Founded in 2014 as an online marketplace for cars and two-wheelers, Droom has since added new services including roadside assistance and auto loans. The company claims to have a market share of nearly 70% in India’s online car market, partnerships with 250,000 car dealers across India, and more than 27 million monthly visitors. It is planning to go public by the end of next year.
Digital Garage led Droom’s INR2 billion ($30 million) Series B round in 2016 along with Singapore-based early stage investor Beenext, and co-led last year’s $20 million Series C round alongside Hong Kong-based Integrated Asset Management Asia. Lightbox India Advisors and Beenos Asia also participated in the Series B and C rounds, after committing INR1 billion in Series A funding in 2015.
Toyota Tsusho’s investment in Droom follows the division’s investment in Southeast Asian ride-hailing app operator Grab last year. The company operates in multiple markets and has interests in the warehousing and logistics, used cars, auto components, and electronics sectors. Last April it launched the Next Technologies Fund to invest up to $55 million in innovative technologies.
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