Online marketplace for new and used vehicles Droom Technologies has widened its losses to Rs 128.55 crore for the financial year ended March 31, 2019, despite significant increase in operating revenues. The company’s losses grew over 75% driven by its expenses which recorded a similar uptick.
The Gurugram-based company’s expenses jumped to Rs 274.41 crore from Rs 157.38 crore in the previous year, regulatory filings showed. Its employee expenses grew to Rs 75.38 crore from Rs 26.45 crore last year.
Despite mounting losses, the company improved its revenues by 103%. Revenue from operations jumped to Rs 136.43 crore from Rs 67.27 in the previous fiscal. Revenue from advertising and IT services more than doubled for the fiscal.
The company also operates two subsidiaries, Droom Tech Logistics Private Limited and its NBFC arm, Droom Finance Tech Private Limited which offers loans and insurance to users. Earlier this month the company acquired Xeraphin Finvest for NBFC licence and strengthen its lending product.
Founded in 2014 by Sandeep Aggarwal, Droom adopts a customer-to-customer approach as part of its automobile marketplace. Its services include verification and standardisation of car dealerships for ease of transaction, as well as other services including roadside assistance and auto loans.
Droom’s main source of revenue is the service fee it charges for every successful transaction. The company has created other revenue streams around purchase of used automobiles, including its used vehicle pricing engine Orange Book Value, vehicle inspection vertical Eco, and services related to discovery, records of pre-owned vehicles and credit.
The company has raised around $125 million over six rounds of fundraising to date. Its investors include Lightbox, Beenext, Beenos, Digital Garage, Toyota Tsusho Corporation, and Integrated Assets Management. In July, CEO Sandeep Aggarwal said that the company was looking to close a round of $250 million.
The company expanded operations to Thailand in April this year, in addition to Malaysia and Singapore which it added last year.
Droom competes with other online marketplaces for used automobiles including Truebil, CarDekho, and CarTrade. Online classifieds platforms OLX and Quikr also operate competing verticals in the segment.