MUMBAI: Droom Technology Ltd, an online marketplace for automobiles, has filed draft papers with the Securities Exchange Board of India (Sebi) to raise around ₹3,000 crore through an initial public offering (IPO)
The issue comprises a fresh issuance of equity shares worth ₹2,000 crore and an offer for sale of up to ₹1,000 crore by promoter Droom Pte Ltd, which holds 100% stake in Droom Technology, according to the draft red herring prospectus (DRHP).
The company may consider a pre-IPO sale of up to ₹400 crore worth of shares, as per the DRHP.
Droom plans to use ₹1,150 crore from the IPO proceeds to fund organic growth and ₹400 crore for inorganic growth initiatives.
ICICI Securities, Axis Capital, Edelweiss Financial Services, HSBC and Nomura are the lead managers to the issue.
In July, Droom had raised $200 million ( ₹1,486 crore) in a pre-IPO funding round at a valuation of $1.2 billion, VC Circle reported. The funds were raised from new investors, including 57 Stars and Seven Train Ventures, and existing investors.
For fiscal 2021, Droom reported a revenue of ₹135.52 crore compared with ₹181.37 crore a year ago, while net loss narrowed to ₹68.88 crore from ₹89.60 crore. As of June 2021, it had a total debt of ₹30.18 crore
Its gross merchandise value declined to ₹50.19 billion from ₹66.98 billion a year ago due to prolonged countrywide lockdowns. Business has impacted and the company witnessed a significant reduction in operations during the pandemic, as per the DRHP.
Founded by Sandeep Agarwal in 2014, Droom Tech is a technology and data science company that facilitates online buying and selling of automobiles through a combination of asset-light automobile e-commerce platform along with a technology-driven vertically integrated proprietary ecosystem of products and services.
It is the only major Indian player with a completely online transactional model and offers one of the largest selection of automobiles among major online players in India with over 1.15 million vehicles listed that includes both used and new cars and two wheelers, and other vehicles as of September 2021.
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