Price Band: —
Min. Investment: Not disclosed (DRHP stage)
Issue Size: ₹3,000 Cr
About the Company
What does this company do?
Droom Technology Limited is an online automobile marketplace in India that facilitates buying and selling of new and used vehicles. The company operates the 'Droom' platform which connects buyers, sellers, and dealers across various vehicle categories including cars, bikes, and other automobiles. Droom also provides an…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
₹3,000 Cr
Fresh Issue
₹2,000 Cr
Proceeds go to company
OFS
₹1,000 Cr (OFS proceeds go to Droom Pte. Ltd. as Promoter Selling Shareholder, not the company)
Proceeds to selling shareholders
Products & Brands
Key offerings and brand portfolio of the company.
Droom Marketplace: Online platform for buying and selling new and used automobiles including cars, bikes, scooters, and commercial vehicles
Scroll to see all 5 products/brands
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | FY2021 | FY2020 | FY2019 |
|---|
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS (₹)
—
Not disclosed in this section of DRHP
P/E Ratio
—
Price band not yet determined
RoNW (%)
—
Not disclosed in this section of DRHP
NAV per Share (₹)
—
Not disclosed in this section of DRHP
Debt/Equity
—
Not disclosed in this section of DRHP
EBITDA Margin (%)
—
Not disclosed in this section of DRHP
PAT Margin (%)
—
Not disclosed in this section of DRHP
Revenue Growth YoY
—
Not disclosed in this section of DRHP
Peer Comparison
Listed peers in the same industry — compare valuation and scale.
| Company | Exchange | Market Cap | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|---|---|
| CarTrade Tech Limited | NSE | — | — | — | — | — |
| Easy Trip Planners Limited | NSE | — | — | — | — | — |
* Peer data extracted from DRHP. All figures in ₹ Crores unless stated. P/E based on latest available earnings.
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
OFS Note: ₹1,000 Cr of OFS proceeds will go directly to Droom Pte. Ltd. (Promoter Selling Shareholder) and will NOT be received by the company.
1
Fresh Issue proceeds of ₹2,000 Cr to be utilised by the company for purposes as detailed in the Objects of the Offer section.
2
Company may also consider a Pre-IPO Placement of up to ₹400 Cr prior to filing the Red Herring Prospectus, which if completed will reduce the Fresh Issue size accordingly.
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Pioneer and leading brand in India's online auto e-commerce segment
Full-stack marketplace with integrated services (financing, insurance, inspection, pricing tools)
Proprietary data science and technology capabilities for vehicle valuation and discovery
Presence across multiple international markets in Southeast Asia
⚠️Weaknesses
Persistent losses since incorporation with no clear near-term path to profitability
High customer acquisition costs and dependence on paid digital marketing
Limited brand recognition compared to offline incumbents in the used car segment
Operational complexity of managing a fragmented and unorganized seller base
🚀Opportunities
Large and underpenetrated Indian used automobile market with accelerating online adoption
Growing internet penetration and smartphone usage driving digital commerce in Tier 2 and Tier 3 cities
Expansion of ancillary services (auto loans, insurance, fleet management) to improve monetization
International expansion in Southeast Asian markets with similar demographic profiles
🔥Threats
Intense competition from well-funded players like Cars24, OLX, CarDekho, and traditional OEMs building digital channels
Regulatory changes affecting e-commerce or the automobile sector
Macroeconomic downturns impacting consumer demand for automobile purchases
Risk of disintermediation as OEMs and dealers build their own digital platforms
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
India's leading online auto e-commerce marketplace with a first-mover advantage
✓
Full-stack platform offering end-to-end services including discovery, financing, insurance, and inspection
✓
Large and fragmented used automobile market in India providing significant growth runway
✓
Technology-driven approach with proprietary pricing tools and data science capabilities
✓
Diversified revenue streams from marketplace, financial services, and ancillary products
✓
International expansion across Southeast Asia providing additional growth opportunities
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
The company has incurred significant losses since inception and may continue to be loss-making for the foreseeable future
⚠
Highly competitive market with both online and offline players including OLX, CarDekho, CarTrade, and traditional dealerships
⚠
Heavy dependence on digital marketing and performance marketing for customer acquisition, leading to high customer acquisition costs
⚠
Regulatory risks related to automobile sector policies, data privacy, and e-commerce regulations
⚠
Risk of inability to monetize the platform effectively and achieve unit economics at scale
⚠
Dependence on the overall health of the Indian automobile industry, which is cyclical and subject to macro-economic factors
◆ Neutral
Should You Apply?
Droom Technology Limited is India's pioneering online auto e-commerce marketplace, offering a full-stack platform for vehicle transactions along with ancillary services like financing, insurance, and inspection. The company is raising ₹3,000 Cr through this IPO (₹2,000 Cr fresh issue + ₹1,000 Cr OFS by Droom Pte. Ltd.), though detailed financials and pricing are not yet disclosed as this is a DRHP filing dated November 2021. The company operates in a large and growing market but has been loss-making since inception, which is a key concern for investors. Valuation attractiveness can only be assessed once the price band is announced, and investors should closely evaluate the path to profitability before subscribing.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (5)
ICICI Securities
Axis Capital
Edelweiss
HSBC
Nomura
Registrar to the Issue
📋
Kfin Technologies Private Limited
Registrar to the Issue