A new Indian startup has achieved the status of a unicorn by creating an online marketplace for automobiles.Gurgaon-headquartered Droom said on Wednesday it is raising up to $200 million in what it described as a pre-IPO growth funding round. The startup, which is seven years old, was valued at $1.2 billion. This figure is up from $500 million in October 2018The new round was funded by 57 Stars, Seven Train Ventures, and other existing investors, according to the startup. Lightbox and Toyota were among the early backers of the startup. It had previously raised approximately $125 million before the new investment.Droom is an Indian marketplace that allows people to buy and sell multi-category vehicles, such as motorbikes and cars. Buyers can view verified listings and use tools to schedule, negotiate, and communicate with sellers. Sellers have access to tools that allow them to manage their listings, estimate prices, and resolve disputes.Drooms annual run-rate at the moment is $1.7 billion in GMV and $54 millions in net revenue. According to a short statement, the company is on track for a GMV of 2 billion and a net revenue of $65 millions in CY2021, Drooms stated.Droom is on track to become a technology-oriented company with high operational efficiency and scale.The startup competes against other Indian companies like Spinny or Cars24 and said that it is working towards an IPO and listing on India's Nasdaq next year.In a statement, Sandeep Aggarwal (founder and chief executive officer of Droom) said that over the past seven years, millions of dollars have been invested and thousands of hours have been spent to create a fully technology-based, end-to-end marketplace for selling and buying automobiles online.The technology-based machinery has been developed from the first-mile services, such as OBV, ECO and History, to mid-mile service like loan & Insurance and last-mile delivery like doorstep delivery. Droom has experienced steady growth since the acquisition of Covid. Although automobile is the most popular retail category, it is also the least well-known online. We expect that automobile sales and buying will shift quickly online in a post-pandemic environment.Droom is now the 17th Indian startup that has become a unicorn, as prominent investors increase their stakes in India's second largest internet market.Updated at 1.06pm on July 28th: The story was updated with the following information: Droom has raised up to $200 million, but not all.
