Droom buys Xeraphin to strengthen lending arm
Automobile marketplace Droom Technology has acquired a non-banking financial company (NBFC) Xeraphin Finvest for an undisclosed amount.
The Gurgaon-based company said that the move is aimed to strengthen its lending arm, Droom Credit.
“Xeraphin Finvest’s acquisition will further bolster our capabilities in offering loans at a larger scale, ensuring maximum convenience and minimum hassles for our primary stakeholders, thereby building the narrative of success for Droom further,” said Sandeep Aggarwal, founder and chief executive officer, Droom, according to a statement.
The company claims to have processed over 10,000 loans in the last 12 months. Droom has also on-boarded several lending partners which include IDFC First Bank, Yes Bank, Tata Capital, Mannapuram Finance, Faircent, Hero Fincorp, Cashkumar, and Lendbox, it said in the statement.
“At Droom we have spent the last five and a half years building not only the most advanced transactional platform and tools online for the automobile industry but also the entire 21st-century digital ecosystem with pricing, certification, financial services,” Aggarwal added.
The company claims that it generates $1.3 bn in annualised gross merchandise value (GMV) and growing at a rate of 100% Y/Y.
Droom is also present in Singapore, Thailand, and Malaysia apart from its operations in India.
It competes with the likes of Cars24, CarDekho, OLX, CarPrice, STCars and OLX, in this segment.
Founded in 2014 by Aggarwal, Droom offers a wide range of categories from bicycles to planes and all automobile services such as warranty, insurance and auto loan. It claims to use data science to build a trust score.
Media reports suggest Droom paid around $3 to $3. 5 million for Xeraphin. The deal comes a year after the company raised about $30 million from a group of investors.
The company says it has raised around $125 million over six rounds of fundings, to date. Its investors include Lightbox, Beenext, Beenos, Digital Garage, Toyota Tsusho Corporation, and Integrated Assets Management.