Droom, India’s first and leading online marketplace to buy & sell second hand vehicles is on the verge of doubling its annualized sales and gross merchandise value (GMV) from Rs 4,000 crores to Rs 8,000 crores by the end of 2018.
The company also revealed that it is targeting Rs 275 crore of net revenue for 2018 and Rs 700 crores for 2019.
The hike of Droom’s gross revenue growth is mostly attributed to the fact that it offers a customer-to-customer selling platform, as well as an adoption of ecosystem services tools and bulk buying of vehicles to ultimately resell them to ride sharing companies.
The platform boasts four different revenue streams, which will allow Droom to achieve its set revenue target. For example, the platform receives revenues from its selling of used and new vehicles business, from premium subscription charges, advertising and selling of additional products and ecosystem services they develop themselves.
Droom’s Ecosystem service tool and the online selling of vehicles are the revenue streams that generate the most profits and the firm will now try to add its business-to-customer transactions to that list.
“It’s been more the 40 months for us being operational and we have marked a tremendous growth of 300 percent in last year with burn rate at under three percent gross revenue. This year, we will be more focused on deepening our presence in first 100 cities in India with our B2C dealers network, C2C selling format, Droom credit, QuickSell (C2B) and Droom Enterprise,” said Droom founder and CEO, Sandeep Aggarwal.
The Indian automobile sector saw tremendous developments through the years and now stands as the third largest market in the world, with a value of around $125 Billion and is forecasted to be worth $200 Billion by 2020. Droom is looking forward to promote and increase the amount of vehicles sold online for they only hold one percent of the overall market so far.