India-based, corporate-backed automotive e-commerce platform operator Droom has filed to raise up to Rs 30bn ($403m) in an initial public offering on the Securities and Exchange Board of India.
The company plans to issue $269m in fresh shares to anchor investors and offer up to $134m for sale. The size of the initial issue will decrease if it succeeds in securing an additional $53.7m through a private placement.
Droom runs a machine learning and data analytics-enhanced online marketplace that helps users buy and sell second-hand cars. It will use the IPO proceeds for organic and inorganic development plans and general corporate purposes.
The filing comes after Droom closed a first tranche of undisclosed size for a pre-IPO round with a reported target of $20om, in July this year, from investors including Seven Train Ventures and 57 Stars at a $1.2bn valuation.
The company had previously received roughly $125m, a total which included a $30m series E round in October 2018 led by Joe Hirao’s family office and backed by unnamed other investors.
Toyota Tsusho, a trading subsidiary of carmaker Toyota, co-led a $30m series D round for Droom five months before with internet company Digital Garage, valuing it at $550m. E-commerce firm Beenos also participated in the round, as did Ellison Investments, Lightbox, Beenext and two unnamed family offices.
The company’s $20m series C round was led by Integrated Asset Management in 2017 and included Digital Garage, Beenos, Beenext and Lightbox.
Beenext and Lightbox had already taken part in a $30m series B round for the company a year earlier, after the latter had co-led a $15.6m series A round with Beenos in 2015.
ICICI Securities, Axis Capital, Edelweiss Financial Services, HSBC Securities and Capital Markets and Nomura Financial Advisory and Securities are serving as book running lead managers for the offering.
