Online automotive marketplace Droom joins unicorn club

Droom has raised a fresh round of funding taking its valuation to $1.2 billion as it targets an initial public offering (IPO) by 2022.

Without disclosing the amount raised, the company said it has closed the first leg of its ongoing pre-IPO growth funding round of up to $200 million from 57 Stars and Seven Train Ventures besides existing investors.

The online automobile marketplace is pursuing a dual track for a possible IPO, and aims to be listed either on NASDAQ or in India. This makes it another NCR-based startup, after Zomato, Paytm and Policybazzar, that is going for an IPO.

Droom's current annual run-rate is $1.7 billion for gross merchandise value and $54 million for net revenue. The company remains on track to touch a GMV of $2 billion and a net revenue of $65 million in calendar year 2021.