Droom: Revolutionizing the Used Vehicle Marketplace in India with AI-Driven Solutions

Company Highlights

• Founded: 2014
• Founders: Sandeep Aggarwal, Navdeep Singh, Sahil Sethi, and Mayank Chaudhary
• Headquarters: Gurugram, Haryana, India
• Funding: Over $358 million raised from investors including Digital Garage and LionBird
• Employee Count: 385 employees​
• Services: Droom provides a full-stack marketplace for pre-owned cars, bikes, and electric vehicles. It offers services like Droom Price Engine, Droom Inspection, Droom Credit, and Droom Insurance​
• Market Reach: Droom operates across India and aims to expand its presence globally​
• Mission: To become the most trusted and transparent marketplace for automotive transactions.

About Us

Droom is a prominent online platform that facilitates the buying and selling of pre-owned vehicles in India. Founded in 2014, Droom uses Artificial Intelligence and big data to provide innovative solutions like real-time pricing, vehicle inspection, and financing. Their marketplace offers a wide variety of vehicles, including cars, bikes, and electric vehicles. Droom’s services aim to make vehicle transactions hassle-free, transparent, and secure. The company has played a significant role in digitizing the auto industry and providing solutions that cater to both buyers and sellers.

The platform's focus on technology includes the Droom Price Engine for accurate vehicle pricing, Droom Inspection to verify vehicle quality, and Droom Credit for offering financing options to buyers. Droom continues to innovate with its range of services and plans to further expand its market share in India and international territories

Industry

Droom operates in the automotive e-commerce industry, which has seen rapid growth due to the increasing adoption of digital platforms for buying and selling vehicles. The used vehicle market in India is one of the largest segments of the automotive industry. Driven by changing consumer behavior, high vehicle demand, and the ease of digital transactions, the used vehicle segment is expected to grow at a rapid pace in the coming years.

The industry is supported by major trends like the rise of electric vehicles (EVs), shifting from traditional car sales to more sustainable options, and the increasing interest in online platforms for vehicle purchases. Droom competes with other players in the market, such as OLX Autos, Cars24, and Mahindra First Choice Wheels, which also focus on enhancing the used vehicle buying and selling experience through technology

Founders and Team

Droom was founded by Sandeep Aggarwal, along with Navdeep Singh, Sahil Sethi, and Mayank Chaudhary in 2014.

• Sandeep Aggarwal is the CEO of Droom. He is an experienced entrepreneur, also known for founding ShopClues, an online marketplace. His leadership and vision have driven Droom’s growth in the competitive e-commerce and automotive sectors.
• Navdeep Singh is the Chief Technology Officer (CTO), contributing his expertise in technology and innovation, which is central to Droom’s platform.
• Sahil Sethi and Mayank Chaudhary are instrumental in the product and business development side of Droom, focusing on scaling the marketplace and enhancing customer experience​.

Startup Story

Droom was founded in 2014 with the vision to simplify the process of buying and selling pre-owned vehicles through an AI-driven platform. Sandeep Aggarwal, with his previous experience in founding ShopClues, recognized the potential for an online marketplace dedicated to vehicles, which could address inefficiencies in the traditional buying and selling process.

The idea for Droom was born from the frustration of consumers who had difficulty accessing transparent information about vehicle pricing and quality. Leveraging his expertise in e-commerce and technology, Aggarwal launched Droom to address these challenges. The platform provides users with a seamless experience, integrating services like Droom Price Engine for pricing transparency, Droom Inspection for vehicle quality checks, and Droom Credit for financing options.

Droom quickly gained traction by offering not just a marketplace but also a comprehensive set of tools and services for both buyers and sellers. The company’s focus on using AI and Big Data helped it stand out in the crowded automotive e-commerce space. Over the years, Droom has become one of the leading online platforms for buying and selling used vehicles in India, expanding into electric vehicles and more.

Mission

Droom’s mission is to be the most trusted and transparent marketplace for the buying and selling of vehicles, empowering consumers with the best tools and technology to make informed decisions. By leveraging Artificial Intelligence (AI) and Big Data, Droom aims to simplify the vehicle transaction process and build a robust digital platform that ensures seamless experiences for buyers and sellers across India and globally

Vision

Droom envisions becoming the global leader in online vehicle transactions, transforming how people buy and sell cars, bikes, and electric vehicles. By providing cutting-edge solutions like the Droom Price Engine and Droom Inspection, they aim to enhance trust, efficiency, and customer satisfaction. Their vision extends to supporting the growth of electric vehicle (EV) adoption in India, contributing to a more sustainable future

Goals

• Expand Market Reach: Droom aims to strengthen its position in India and expand to international markets by offering a comprehensive vehicle marketplace.
• Enhance Technology Integration: Continuously improving the AI and Big Data tools to offer better pricing, vehicle condition assessments, and financing options for consumers.
• Leadership in Electric Vehicles: Droom plans to capitalize on the growing EV market by offering a variety of electric vehicles and related services.
• Customer-Centric Growth: By continuously improving customer service and transparency, Droom aims to further solidify itself as the leading online marketplace for vehicles

Business and Revenue Model

Droom operates on a marketplace model, connecting buyers and sellers of pre-owned and new vehicles, including cars, bikes, and electric vehicles. The company provides a digital platform where sellers can list their vehicles, and buyers can browse, inspect, and make purchases directly. Droom earns through a combination of the following revenue streams:

1. Transaction Fees: Droom charges a commission on every vehicle sale made through its platform. The fee structure can vary based on the type of vehicle, its condition, and the sale price.
2. Value-Added Services: The company offers several services such as Droom Inspection, Droom Credit (vehicle financing), Droom Price Engine (vehicle pricing transparency), and Droom Insurance. These services are charged either as one-time fees or on a subscription basis.
3. Advertising and Promotions: Sellers can opt for enhanced listings and targeted advertising on the platform, contributing to Droom’s revenue.
4. B2B Revenue: Droom also serves car dealerships, offering them tools to manage their inventory and reach a wider audience

Fundings and Investors

Since its inception, Droom has raised significant capital across multiple funding rounds to support its growth and technological advancements. As of 2024, the company has raised over $358 million from a variety of investors. Some of the notable investors include:

• Digital Garage: A Tokyo-based venture capital firm specializing in tech-driven businesses.
• LionBird: A prominent investor known for backing innovative technology startups.
• 57 Stars: A venture capital firm that has supported Droom’s growth with strategic investments​

These investments have allowed Droom to scale its operations, enhance its platform’s AI capabilities, and expand its services across India and internationally. The funding also aids in expanding their inventory, technological infrastructure, and enhancing the customer experience through features like Droom Price Engine and Droom Inspection.

Shareholding & Growth and Revenue

Droom has raised significant funds over its journey, attracting investments from notable venture capital firms. As of 2024, it has raised over $358 million, fueling its growth and technology-driven initiatives. The funding has been critical in scaling its platform and expanding its market reach.

The company's shareholding distribution includes participation from leading investors like Digital Garage, LionBird, and 57 Stars, although specific equity stakes have not been publicly disclosed. These investors have played a key role in Droom's expansion into both urban and rural areas of India, as well as in its push into the electric vehicle (EV) sector

In terms of growth, Droom has significantly increased its user base, with millions of users on its platform. The company has become a leader in India’s used vehicle market, leveraging its AI-driven marketplace to ensure trust and transparency in transactions. It continues to grow by expanding its vehicle categories, adding new services, and enhancing its platform's technological capabilities. Droom's expansion into the electric vehicle market also highlights its growth strategy to tap into emerging trends in the automotive industry​

As for revenue, Droom’s business model is diversified, generating income from transaction fees, value-added services (such as Droom Credit and Droom Inspection), and advertising on its platform. These revenue streams have allowed Droom to sustain and expand its operations

Competitors

Droom operates in a competitive landscape that includes both traditional vehicle marketplaces and newer digital players. Key competitors include:

1. Cars24: A well-established online marketplace for buying and selling used cars in India, offering services like online car evaluation and financing, much like Droom.
2. OLX Autos: Part of the global OLX Group, OLX Autos is another major player in India’s used car market, providing an online platform for selling and buying vehicles.
3. Mahindra First Choice Wheels: This platform provides pre-owned vehicle sales and dealer services, targeting a similar audience of car buyers looking for trusted second-hand vehicles.
4. CarDekho: While CarDekho is more focused on new and used car sales and is known for its vehicle reviews, it also competes with Droom by offering digital tools for vehicle purchasing and financing.
5. Spinny: A growing competitor, Spinny focuses on the end-to-end used car transaction process, offering features like home delivery and warranty.

Future Plans

Droom's future plans focus on further solidifying its leadership position in the used vehicle market while capitalizing on emerging trends such as electric vehicles (EVs). Key areas of expansion and growth include:

1. Expansion into International Markets: Droom plans to broaden its geographic presence beyond India. The company is exploring opportunities in Southeast Asia, the Middle East, and other emerging markets where the used vehicle segment is growing.

2. Electric Vehicle (EV) Growth: Droom is committed to tapping into the rapidly growing electric vehicle (EV) market. The company aims to diversify its offerings by listing more electric vehicles and integrating related services such as EV financing and charging infrastructure.

3. Enhanced Technology Integration: As part of its future strategy, Droom intends to continue advancing its AI and Big Data capabilities. This includes expanding its Droom Price Engine and Droom Inspection services to offer more accurate vehicle pricing and better quality checks.

4. Improving Customer Experience: Droom will continue refining its user experience, focusing on improving both buyer and seller satisfaction. This includes offering enhanced after-sales services and expanding its Droom Insurance and Droom Warranty options to further build trust and security.

5. Sustainability Initiatives: The company plans to introduce more environmentally friendly features, including partnerships with sustainable vehicle manufacturers and providing services that help promote eco-friendly transportation options​

FAQ

1. What services does Droom offer?
   Droom offers an AI-powered online marketplace for buying and selling pre-owned and new vehicles, including cars, bikes, and electric vehicles. Key services include Droom Price Engine, Droom Inspection, Droom Credit (financing), Droom Insurance, and Droom Warranty​

2. How does Droom ensure the quality of used vehicles?
   Droom uses its Droom Inspection service to conduct thorough vehicle checks. This ensures transparency and trust in the quality of used vehicles listed on the platform. The inspection covers over 200 points of verification​

3. Is Droom available in all cities of India?
   Yes, Droom operates across India, serving both urban and rural areas. The company continues to expand its reach to more locations, making vehicle transactions accessible across the country​

4. Can I buy a car or bike on Droom without financing?
   Yes, customers can purchase vehicles on Droom without financing. However, Droom offers Droom Credit as an option for those who wish to avail themselves of financing solutions for their vehicle purchases​

5. What makes Droom different from other platforms?
   Droom differentiates itself by offering a fully digital and technology-driven experience, leveraging AI and Big Data for vehicle pricing, inspection, and financing. The company's comprehensive service suite, including vehicle warranties and insurance, also sets it apart

Latest News

Droom, the leading auto e-commerce platform in India, has made strides in digital transformation and marketplace expansion. Recently, it filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹3,000 crore through an Initial Public Offering (IPO). The IPO will consist of a fresh issue of ₹2,000 crore and an offer for sale of ₹1,000 crore, with a potential listing in the near future​

Droom also introduced the AI-powered MyDroom platform to enhance user experience, aiming to leverage artificial intelligence in its services to create a more personalized and seamless online shopping experience for automobiles​

Additionally, the company has outlined plans to expand internationally, focusing on Southeast Asia, and is preparing for its IPO with an anticipated market valuation that could surpass ₹1.2 billion​