India: Auto platform Droom raises Series B led by Beenext, Japan’s Digital Garage

Online automobile market place Droom has raised an undisclosed amount in its Series B round led by Singapore’s Beenext and Japanese incubator and venture capital firm Digital Garage.

The funds will be used for its planned expansion into southeast Asia later this year apart from strengthening its platform and presence in India.

“We are still operating at the floor in India. There is a huge untapped market here, so we want to strengthen our position here first,” said Droom founder and CEO Sandeep Aggarwal, adding that company was looking for an overseas foray by November. It is targeting markets such as Singapore, Malaysia, and Indonesia.

Prior to this round, the company raised $16 million in three rounds including two tranches of seed funding.

Founded in April 2014, Droom is a marketplace for new and used automobiles and services. It competes with Mumbai-based CarTrade, which raised $142 million in January from Temasek and March Capital.

Existing investors, Lightbox Ventures and Beenos, also participated in the latest round along with new institutional investors from China and Japan, Droom founder Sandeep Aggarwal said, at a media conference.

While the size of the deal was not disclosed, earlier news reports had said the company was in talks to raise around Rs 200 crore ($30 million).

“The amount raised is significantly higher than the Series A that Droom raised in July 2015,” Aggarwal said.

Beenext, founded by Japanese e-commerce entrepreneur and investor Teruhide Sato last year, has invested from its $60-million fund. The firm will be investing half of that amount into Indian startups.

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