Dubai (UAE), November 29 (ANI): The founder and CEO of used automobile market ‘Droom’, Sandeep Aggarwal mentioned on Wednesday that the corporate plans to provide you with an preliminary public providing (IPO) in March 2025.
In an unique interview with ANI, Aggarwal mentioned that the corporate is planning to restart the IPO course of subsequent 12 months and in March 2025, the corporate will go public.
On the sidelines of the India Global Forum’s Middle East and Africa 2023, Aggarwal mentioned that the auto market and the second-hand car market in India have enormous potential. India lately, a couple of months in the past, turned the third-largest car market on the earth.
A decade in the past, we have been sixth largest, but when you concentrate on it, despite being third largest now, solely 5pc of Indian households have a automobile and 25 per cent of households have two-wheelers.
The Indian car market, particularly used automobiles, can develop roughly at a 12 to fifteen% compounded annual development price for many years to come back. In the highest 20 economies, that is in all probability the quickest means an car market is rising. The Indian second-hand automobile market has enormous potential. If you see the worldwide developments, they’re very encouraging for the used automobile market.
According to a research roughly 10 years in the past, for each new automobile, 1.2 used automobiles have been offered. That quantity is now at 1.65 automobiles offered per 12 months, as towards one new automobile in India. The greatest ratio of used automobile gross sales is within the United Kingdom at 3.3. The second-best ratio is in Germany, Japan and the USA, with round 2.8 used automobiles offered as towards one new automobile sale.
Aggarwal mentioned that within the subsequent 5 years, India can simply contact 2.5 to 2.8 used automobile offered for each new automobile. So there’s enormous potential.
Aggarwal mentioned that one other factor is that India has the world’s largest youth inhabitants, the aspirational worth could be very excessive and the common period of automobile possession has come down dramatically.
Talking about why somebody will spend money on Droom as an e-commerce second-hand automobile firm, Aggarwal mentioned {that a} decade in the past, it was roughly six to seven years and proper now it is round 5 years. Droom is a pure-play e-commerce firm. India is now very engaging globally.
Then, on high of that, we’re speaking concerning the third-largest car market, which can in all probability develop the quickest within the subsequent 20 years. And then comes Droom, the place we’ve got a really disruptive expertise mannequin, which is asset gentle. We have the biggest choice in India for any automotive retail play.
On our platform, roughly 24,000 crore rupees value of used automobiles have been offered in a single 12 months. We have a low value, world-class applied sciences and a really futuristic mannequin. So that truly creates a really, very compelling alternative. We are an Initial Public Offer (IPO) firm. the corporate has raised seven spherical of capital, and hopefully in early 2025, we’ll file our IPO. So It’s entry level for traders proper at this stage.
Sandeep Aggarwal can also be an investor who invests in startups. Talking about his funding, Aggarwal mentioned that I’m a reasonably energetic angel investor. I used to be capable of construct two giant corporations in India. I’ve invested in 62 corporations, and out of them, roughly half of the funding I’ve made since January 2033Droom, based in 2014 by Aggarwal, provides an e-commerce platform the place it connects used automobile passenger sellers with potential prospects. The Unicorn additionally supplies financing by its tie-up with banks and NBFCs. By the top of 2021, Droom claimed to have a presence in over a thousand cities the world over, together with in Southeast Asia, the Middle East and Africa.
Droom, which competes towards the likes of Spinny, Cars24, and CarTrade, entered the coveted unicorn membership in 2021 after elevating $200 Mn from new traders akin to 57 Stars and Seven Train Ventures. (ANI)