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Droom’s revenue sinks 32% in FY23, losses drop to Rs 62 Cr

  • February 7, 2024
  • By Team TheKredible
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Breaking the streak of steady growth it saw for the past three years, Gurugram-based Droom recorded a 32% drop in its FY23 revenue. The e-commerce company’s revenue for the fiscal year ending March 2023 stood at Rs 262.6 crore, a significant drop as compared to the previous fiscal year’s Rs 390 crore.

While revenue from operations contributed over Rs 253 crore in FY23, the preceding fiscal year saw more than Rs 384 crore coming in from operations.

Founded in 2014, Droom is an online marketplace for buying and selling used vehicles, including cars, motorcycles, planes, electric vehicles etc. Offering over 2.9 lakh vehicles, including used and new cars and 2-wheelers, it serves as a platform for buyers and sellers to negotiate, communicate, schedule, offer verified listings and more.

Buyers can search, book, finance, and receive doorstep delivery, with a unique option to return before full payment. Droom has a network of over 20,000 dealers and further plans on collaborating with OEMs and EV manufacturers to extend its network.

Following the drop in revenue, Droom also witnessed a 38% drop in its expenses to Rs 325.36 crore the same year. While advertisements and promotional costs contributed to the majority of the year’s expenses, a little over 13% of the total expenses came from employee benefit costs.

The Sandeep Aggarwal founded firm’s losses lowered to Rs 62.14 crore in FY23. This was a 54% drop as compared to FY22’s Rs 137 crore losses. The company’s EBITDA margin and ROCE stood at -21.82% and -127.66% respectively.

With a valuation of Rs 8,928 crore, Droom has raised over Rs 2,376 crore through 8 funding rounds. Its raised over Rs 1,480 crore in a Pre-IPO round in mid-2021 led by 57 Stars and SeventTrain Ventures.