Auto ecommerce platform Droom has filed its draft red herring prospectus (DRHP) with markets regulator Sebi to raise Rs 3,000 crore in an initial public offering. The offer comprises a fresh issue of aggregating up to Rs 2,000 crore and an offer for sale of up to Rs 1,000 crore.
Additionally, the company, in consultation with the lead bankers to the issue may consider a further issue of equity shares including a private placement aggregating up to Rs 400 crore. If such placement is completed, the fresh issue size will be reduced.
The company intends to utilise the net proceeds from the fresh issue to fund organic and inorganic growth initiatives aggregating to Rs 1,150 crore and Rs 400 crore respectively and towards general corporate purposes.
For the six months ended September 30, 2021, it has seen 89.27 million visits on its website and app, and has a network of 20,725 auto dealers present in 1,151 cities. It has 2,78,807 used vehicles in 11 categories listed valued at Rs 14,649 crore on its platform, and it sold 56,412 vehicles with a GMV of Rs 5,935 crore in H1 of FY22.
Its revenue in the June quarter was Rs 79 crore and it registered a net loss of Rs 33 crore in the period. Its revenue shrank 27 per cent from Rs 172 crore in FY20 to Rs 125 crore in FY21. Its losses reduced 23 per cent from Rs 90 crore in FY20 to Rs 69 crore in FY21.
ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Limited and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.