Droom, an online automobile transactional marketplace is all set to double its annualised sales and gross merchandise value (GMV) from about Rs. 4,000 crores to Rs. 8,000 crores by the end of 2018.
The company also announced a target of Rs. 275 crore as net revenue for 2018 and Rs.700 crores for 2019.
Droom's gross revenue growth is primarily driven by its largest dealer-focused platform, growing C2C selling format, adoption of ecosystem services tools and its enterprise business including bulk buying and selling for ride sharing companies.
With four different revenue streams and ecosystem services tools, Droom will achieve its net revenue target, which includes core transactional platform of used and new vehicle transactions, premium subscription charges, advertising and selling of products and ecosystem services developed in-house, such as its highly popular algorithmic pricing engine Orange Book Value and auto inspection-verification service provider Eco.
Moreover, Droom's Ecosystem service tool Droom credit and its consumer-to-consumer sales will be major contributors to the increased revenue along with business-to-consumer transactions going forward.
Droom is planning an initial public offering (IPO) by the end of 2019 and profitability by the end of 2018.
"It's been more the 40 months for us being operational and we have marked a tremendous growth of 300 percent in last year with burn rate at under three percent gross revenue. This year, we will be more focused on deepening our presence in first 100 cities in India with our B2C dealers network, C2C selling format, Droom credit, QuickSell (C2B) and Droom Enterprise," said Droom founder and CEO, Sandeep Aggarwal.
India's domestic automobile sector has grown immensely to emerge as the third largest in the world, valued at about USD 125 billion, with an expected jump of USD 75 billion by 2020. Droom's vision is to create, promote and increase the share of the online segment in automobile transactions, which presently is at one percent of the overall figure.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)