Droom Technology Limited
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Droom is a pure-play automobile e-commerce company. It provides a platform for buyers and sellers to transact vehicles and related services. The platform addresses key pain points of buyers and sellers with a wide selection, low prices, inspected and verified vehicles, loan and insurance, and seamless delivery for buyers. For used vehicle dealers and individual sellers, they offer an end-to-end e-commerce solution including technology platform, digital catalogue, online payment, vehicle inspection and certification service, and vehicle delivery service, other than wider reach.
Droom is one of the leading e-commerce platforms for used car sales in India. They are the only major Indian player with a completely online transactional model and offer one of the largest selection of automobiles amongst the major online players in India with over 1.15 million vehicles listed that includes both used and new cars and two-wheelers, and other vehicles as of Sept 2021.
ABOUT THE INDUSTRY
India is currently the fifth-largest automotive industry and is expected to be the world’s third-largest automotive industry in terms of volume by Fiscal 2026. India has one of the lowest motorization rates in the world at 22 cars for every 1,000 people. The market for used vehicles is expected to grow at a CAGR of 15.7% between Fiscal 2021 and Fiscal 2026 to reach Rs. 7,083 billion.
In India, the auto sector has the lowest online penetration compared with other retail categories such as electronics, travel, fashion, and mobile phones. The gross value for used online transacted vehicles in India is Rs. 154 billion as of Fiscal 2021 and is expected to grow at a CAGR of 66.9% between Fiscal 2021 and Fiscal 2026 to reach Rs. 1,994 billion.
Market leader : Droom is one of India’s leading automobile e-commerce platforms. With their proprietary and technology-driven services for certification and convenience, they offer an end-to-end e-commerce platform for buying and selling used vehicles in India.
Technology and Data Science: Droom leverages new-age technologies such as AI, ML, IoT, augmented reality and virtual reality and have adopted a data-driven consultative sales experience which ensures user satisfaction. The model is economically viable independent of scale due to the use of technology, the economy of scale, economy of scope, assets light, and network effects.
Scale of Business: As the platform collects more data, Droom is able to further strengthen the value proposition, which in turn drives assured supply and scale, and further drives consumer experience and more transactions. These network effects are evident in geographical reach that extends to 1,151 cities, over 278,807 used vehicle listings from over 20,725 auto dealers, as of Sept 2021.
Asset Light Model: Droom has an asset-light business model and a lean cost structure. They do not own the vehicles listed on the platform. This enables them to be capital-efficient and scale their business with minimal marginal costs.
Experienced, Founder-led Team: Droom is led by an experienced leadership team with significant industry experience. Sandeep Aggarwal, their Founder and CEO, has over 20 years of experience in the technology and start-up space and has in the past founded, ShopClues.com, a leading Indian e-commerce platform. He has also been associated with Microsoft and Schwab in the past and has been awarded by various reputed forums.
Technology Dependence: Company depends on our proprietary technology for critical functions of their business. Failure to properly maintain or promptly upgrade the technology may result in disruptions or lower quality of services and business.
Cyber Security Breach Risk: We collect, manage, store, transmit, and otherwise process vast amounts of data as part of our business and operations. Any cyber security breach or other security incident on data, platform and services may affect reputation and business. harmed,
Sectoral Risk: India’s automobile industry could be affected by economic conditions, the growth of disposable household income, the cost and availability of credit etc. Wider factors that impact the automobile or e-commerce industry, may affect company's business.
Dealer Relationships: Auto dealers account for a large percentage of the used cars transacted on the platform. Failure to attract and retain auto dealers, whether because of vehicle supply shortage, competition, or other factors, could adversely affect the business.
