Droom Technology, one of India’s largest online automobile marketplaces, is gearing up again for its much-anticipated IPO, expected to raise INR 3,000–3,200 crore. Founded by Sandeep Aggarwal in 2014, Droom pioneered the country’s digital used-vehicle ecosystem, combining marketplace listings with financing, insurance, and inspection services.
After multiple postponements since its first SEBI filing in 2021, the company is now restructuring for a 2026 listing, following a strong rebound in financial performance and profitability during FY25.
Droom IPO will reportedly include both a fresh issue of shares (~INR 2,000 crore) and an offer-for-sale (OFS) by early investors (~INR 1,000 crore), with a valuation target between USD 1.8 to 2 billion (~INR 17,730 crore).
Droom IPO Highlights
| Detail | Description |
|---|---|
| Company Name | Droom Technology |
| Industry | Online Automobile Marketplace / E-commerce |
| Founder | Sandeep Aggarwal |
| Founded | 2014 |
| Expected Droom IPO Size | INR 3,000–3,200 crore |
| Fresh Issue | INR 2,000 crore (approx.) |
| Offer for Sale (OFS) | INR 1,000 crore (approx.) |
| Use of Proceeds | Technology expansion, marketing, debt repayment, and working capital |
| Expected Droom IPO Dates | H1 2026 (NSE & BSE) |
Droom IPO News
August 2025 — Droom IPO Preparations Restarted
Droom reinitiated its IPO journey by engaging leading investment banks — including Kotak Mahindra Capital, Axis Capital, and ICICI Securities — to finalize the size, structure, and timeline of its long-awaited public offering. The company is preparing to re-file its Draft Red Herring Prospectus (DRHP) with SEBI, targeting an INR 3,000–3,200 crore issue by early 2026.
Droom IPO will likely include a mix of fresh issue (~INR 2,000 crore) and offer-for-sale (~INR 1,000 crore) by early investors such as Lightbox Ventures and Toyota Tsusho. Droom is also conducting corporate governance and internal audit reviews to strengthen IPO readiness and ensure compliance with SEBI’s disclosure norms.
March 2025 — Pre-IPO Funding & Valuation Rebound
Droom raised INR 220 crore (~USD 26 million) in a pre-IPO bridge round from existing investors — 57 Stars, Beenext, and Lightbox Ventures — at a valuation of USD 1.7 billion. The funding supported its AI-driven pricing platform, credit partnerships with NBFCs, and marketing for its used car ecosystem.
This round restored investor confidence after a cautious 2023–24 period and positioned the company for profitability-led growth ahead of IPO execution.
Droom FY25 Results: Financial Turnaround & Profitability Milestone
Droom achieved its first full-year profitability since FY21, reporting:
- Revenue: INR 590 crore (↑38% YoY)
- EBITDA: INR 45 crore (vs. loss of INR 20 crore in FY24)
- Gross Merchandise Value (GMV): INR 15,000 crore (↑39% YoY)
- Active Dealers: 22,000+
The company’s AI-based inspection and pricing tools (Orange Book Value and Eco AI) helped cut fraud rates and boosted transaction reliability. A surge in financing and warranty products also supported sustainable unit margins.
Droom IPO News (2024): DRHP Withdrawal & Governance Overhaul
In early 2024, Droom withdrew its earlier 2021 IPO filing, citing market volatility and SEBI’s evolving compliance framework. Rather than pursuing an aggressive listing, the company focused on profitability, governance enhancement, and board restructuring.
A new CFO was appointed in late 2024 to oversee audit functions and strengthen investor transparency.
During this period, Droom also expanded its AI-powered “Eco AI” platform and began integrating real-time pricing, inspection, and fraud detection systems.
2023 — AI Expansion & EV Marketplace Entry
Droom launched its proprietary Eco AI automotive intelligence engine, using advanced data models for valuation, fraud detection, and predictive pricing. It also entered the electric vehicle (EV) resale and marketplace segment — listing pre-owned EVs and offering integrated financing and insurance solutions.
The company’s ecosystem partnerships with HDFC Bank, Kotak Mahindra Bank, and Bajaj Finance helped build a robust full-stack auto commerce model that combined purchase, financing, and warranty in a single digital experience.
Droom IPO News (2021): First DRHP Filing
Droom filed its initial DRHP with SEBI in November 2021, proposing to raise INR 3,000 crore through a INR 2,000 crore fresh issue and an INR 1,000 crore OFS.
At the time, the company was valued around USD 1.3 billion, backed by Toyota Tsusho (Toyota Group), Lightbox Ventures, and Beenext.
However, the listing was deferred due to weak tech market sentiment, rising inflationary pressures, and the fallout from underperforming digital IPOs in India (e.g., Paytm, Zomato).
2019–2020 — Ecosystem Expansion & Fintech Push
During this phase, Droom diversified beyond listings into financing, insurance, and analytics, creating a complete auto-commerce ecosystem.
Key launches included:
- Droom Credit – for digital vehicle loans and dealer financing.
- Droom History – for ownership, accident, and service record verification.
The company also launched Droom Velocity and Droom Discovery, tools enabling dealers and consumers to compare vehicles based on performance, mileage, and pricing history.
2016 — Launch of Orange Book Value (OBV)
Droom launched Orange Book Value (OBV), its proprietary algorithmic vehicle pricing engine — now central to its valuation and risk analytics systems. OBV became India’s first AI-based car pricing benchmark, enabling users to estimate the fair market value of vehicles across segments and regions.
This innovation positioned Droom as a data-driven technology leader in the auto marketplace sector and remains one of its most valuable proprietary assets.
2014–2018 — Founding & Early Growth
Founded in 2014 by Sandeep Aggarwal, Droom introduced India to the C2C and B2C online automobile marketplace model. By 2018, it had expanded to 500+ cities, processed over INR 10,000 crore in cumulative transactions, and onboarded more than 12,000 dealers.
Early backers included Lightbox Ventures, Beenext, Toyota Tsusho, and Digital Garage, which collectively funded Droom’s rapid expansion and product innovation.
Key Investors in Droom
- Toyota Tsusho Corporation (Toyota Group)
- Lightbox Ventures
- Beenext
- 57 Stars
- Digital Garage
- Sandeep Aggarwal (Founder & CEO)
What Lies Ahead
Droom’s IPO journey mirrors India’s evolving digital commerce-to-profitability transition. After years of deferred filings, the company is now positioned on firmer financial footing — balancing technology, ecosystem control, and unit economics.
Analysts view Droom’s upcoming IPO as a litmus test for profitability-driven tech listings, potentially paving the way for other auto-tech players like CarDekho and Cars24 to re-enter public market plans.
If the 2026 listing proceeds as planned, Droom could become India’s first publicly traded pure-play automotive marketplace, redefining the intersection of mobility, technology, and financial innovation.
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