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Droom gets $30-mn funding, to buy back Rs 500-mn shares from employees

Droom gets $30-mn funding, to buy back Rs 500-mn shares from employees on Business Standard. The company aims to double the GMV to $1.4 billion by end of 2018 and to $3.5 billion by 2019. The company plans to go for an IPO by 2020 <br>

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Droom gets $30-mn funding, to buy back Rs 500-mn shares from employees

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  1. Droom gets $30-mn funding, to buy back Rs 500-mn shares from employees The company aims to double the GMV to $1.4 billion by end of 2018 and to $3.5 billion by 2019. The company plans to go for an IPO by 2020.

  2. Online automobile marketplace Droom on Thursday said it has raised $30 million (over Rs 200 crore) led by the family office of Japan-based investor, Joe Hirao. The company, which has raised $125 million in funding till date, is also lining up an ESOP repurchase programme, entailing a spend of about Rs 500 million. "We have been on a fantastic growth trajectory, which is reflected in the confidence of our investors. We have an annualised gross merchandise value (GMV) run rate of $750 million and are doing $20 million annual revenue run rate," Droom founder and CEO Sandeep Aggarwal told PTI. He added that the company has managed to keep its expenses under control and expects to hit profitability in the second half of 2019. The company aims to double the GMV to $1.4 billion by end of 2018 and to $3.5 billion by 2019. The company plans to go for an IPO by 2020. "Our employees have played a key role in this journey. The ESOP buyback will see us buying back shares from over 60 employees, and these people have been with us for over three years or more," he said. Aggarwal added that the repurchase initiative will entail an expense of about Rs 500 million and will be completed by Diwali. Talking about the fresh funding, he said the proceeds will be used to strengthen the platform and offerings like inspection and credit services. "We aim to simultaneously strengthen and diversify our services such as inspection, Droom Credit, C2C and C2B marketplace formats, enable a smooth online transaction and provide more competitive terms and interest rates to customers through Droom Credit," he said. Aggarwal added that the company is also looking to invest in advanced, emerging technologies such as IoT for its ECO segment and Blockchain for its credit facilitation services. He, however, declined to comment on the valuation of the company. In May, Droom had raised $30 million in series D, led by Toyota Tsusho Corporation (a Toyota Group firm), and Japan-based Digital Garage. Business Standard

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