Droom IPO is a proposed Mainboard Book Built public issue by Droom Technology Limited. As disclosed in the company’s Draft Red Herring Prospectus (DRHP), the proposed public issue comprises a fresh issue of equity shares aggregating up to ₹2,000 crore and an Offer for Sale (OFS) of equity shares aggregating up to ₹1,000 crore. The company’s equity shares are proposed to be listed on both the BSE and NSE.
The fresh issue is proposed to be used to fund organic growth initiatives, inorganic growth initiatives, and general corporate purposes. The Offer for Sale is proposed to be offered by Droom Pte. Ltd., the promoter selling shareholder. The final price band, bid lot size, issue dates, and other launch-related details are not available in the DRHP and will be known only after the company finalises the IPO structure and files the subsequent offer documents.
Droom Technology Limited is a technology and data science company that facilitates automobile buying and selling online through an asset-light automobile e-commerce platform and a vertically integrated ecosystem of technology-driven products and services for the automobile industry.
The company’s platform enables users to buy and sell new and used vehicles and covers activities such as vehicle discovery, price discovery, booking, certification, financing, insurance, and delivery. Its ecosystem also includes products and services such as Orange Book Value (OBV), ECO, History, Droom Velocity, loan facilitation, insurance facilitation, and other technology-led solutions for buyers, sellers, dealers, and enterprise customers.
The Indian auto e-commerce market was estimated at ₹207 billion in Fiscal 2020 and was projected in the company’s DRHP to reach ₹2,200 billion by Fiscal 2026, reflecting the digital transformation of vehicle purchasing and increasing adoption of online platforms. Investors should carefully review Droom’s historical losses, business model, proposed use of proceeds, competitive environment, technology dependence, regulatory risks, and the final IPO valuation before making an investment decision.
Table of Contents
IPO Details Information
| IPO Details | Information |
| IPO Name | Droom IPO |
| Company Name | Droom Technology Limited |
| IPO Type | Book Built Issue |
| IPO Category | Mainboard IPO |
| Face Value | ₹1 Per Equity Share |
| Price Band | |
| Issue Size | ₹3,000 Crore (Proposed) |
| Fresh Issue | ₹2,000 Crore |
| Offer for Sale | ₹1,000 Crore |
| IPO Open Date | |
| IPO Close Date | |
| Anchor Investor Bidding | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date | |
| Listing Exchange | BSE & NSE |
| Lot Size | |
| Registrar | KFin Technologies Private Limited |
| Book Running Lead Managers | ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Private Limited and Nomura Financial Advisory and Securities (India) Private Limited |
The company proposes to utilise the net proceeds from the fresh issue primarily for organic growth initiatives, including expansion into Tier 3 and Tier 4 cities in India and selected international markets, user acquisition and retention, marketing and branding, and technology investment. It also proposes to use ₹400 crore for inorganic growth initiatives and the balance for general corporate purposes, subject to the finalisation of the offer and applicable regulations.
Droom IPO Dates
| IPO Event | Date |
| Anchor Investor Bidding | |
| IPO Opening Date | |
| IPO Closing Date | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date |
The Droom IPO dates have not been announced. The DRHP does not specify the subscription opening date, closing date, allotment date, refund date, demat credit date, or listing date.
Droom IPO Reservation
| Investor Category | Reservation |
| Qualified Institutional Buyers (QIB) | Not Less Than 75% |
| Non-Institutional Investors (NII) | Not More Than 15% |
| Retail Individual Investors (RII) | Not More Than 10% |
The final allocation under each investor category will depend on the terms of the final offer document and the number of valid applications received during the IPO subscription period.
Droom IPO Lot Size
| Application | Shares | Amount |
| Retail Minimum | ||
| Retail Maximum | ||
| S-HNI Minimum |
The Droom IPO price band and minimum bid lot size have not been announced in the DRHP. The application amount will be updated after the company announces the final price band and lot size.
About Droom Technology Limited
Droom Technology Limited is a technology and data science company focused on facilitating automobile transactions through an online platform. The company operates an asset-light automobile e-commerce model designed to connect buyers, sellers, dealers, and other participants across the vehicle transaction lifecycle.
The platform provides access to new and used vehicles and supports activities such as search, price discovery, certification, financing, insurance, and delivery. Droom also offers proprietary and technology-driven products and services that support vehicle valuation, inspection, history, research, transaction facilitation, financing, and insurance.
As disclosed in the DRHP, Droom had more than 1.15 million vehicles listed across its platform as of September 30, 2021, including used and new cars, two-wheelers, and other vehicles. The company stated that its technology-driven and asset-light model was designed to provide broad reach without owning the inventory or operating physical retail stores.
Business Operations
Droom Technology Limited operates a technology-led automobile e-commerce ecosystem covering multiple parts of the vehicle buying and selling journey.
- Automobile E-commerce Platform – The company provides an online platform through websites and mobile applications for buying and selling new and used vehicles.
- Vehicle Discovery & Price Discovery – Users can search for vehicles, compare available options, and access pricing information to support purchase and sale decisions.
- Vehicle Certification & Inspection – The company offers technology-driven certification and inspection services designed to provide additional information and confidence in used-vehicle transactions.
- Orange Book Value (OBV) – Droom’s proprietary vehicle valuation product provides estimated market values for vehicles and supports price discovery.
- Droom History – The company offers vehicle history-related information to support buyers in evaluating used vehicles.
- Droom Discovery – The platform provides vehicle research and discovery tools that help users evaluate vehicle options before purchase.
- Loan & Insurance Facilitation – Droom facilitates vehicle financing and insurance services as part of its broader automobile transaction ecosystem.
- Vehicle Delivery & Transaction Services – The company supports transaction completion through payment, documentation, delivery, and related services.
- Enterprise & Dealer Solutions – Droom provides technology, digital catalogue, transaction, marketing, and related solutions for automobile dealers and enterprise customers.
- International Operations – The company has subsidiaries and operations in selected international markets and has disclosed plans to expand its presence beyond India.
Industry Overview
The vehicle purchasing journey is undergoing digital transformation, with online platforms increasingly connecting buyers, sellers, dealers, financiers, insurers, and other stakeholders. According to the industry information cited in Droom’s DRHP, the Indian auto e-commerce market was estimated at ₹207 billion in Fiscal 2020 and was projected to grow to ₹2,200 billion by Fiscal 2026.
The DRHP also highlighted rising internet penetration, smartphone adoption, digital payments, changing consumer behaviour, increasing acceptance of online vehicle research, and the formalisation of the used-vehicle market as important drivers of auto e-commerce. The company’s DRHP stated that auto e-commerce penetration of the overall auto market was expected to increase significantly through Fiscal 2026.
Business Strategy
Droom Technology Limited focuses on expanding its automobile e-commerce platform, strengthening its technology and data science capabilities, increasing user and dealer participation, and expanding its presence across additional cities and markets.
The company’s proposed growth strategy includes expanding into Tier 3 and Tier 4 cities in India, entering selected international markets, investing in technology infrastructure, increasing buyer and seller acquisition, strengthening marketing and branding, and pursuing strategic acquisitions or other inorganic growth initiatives.
Droom IPO Financial Information
A company’s financial performance provides valuable insights into its revenue growth, profitability, operating efficiency, financial position, and funding requirements. Reviewing Droom’s historical financial information is particularly relevant because the company reported losses during the financial years covered in its DRHP.
Droom Financial Summary
| Particulars | FY2019 | FY2020 | FY2021 |
| Revenue from Operations | ₹135.97 Crore | ₹172.17 Crore | ₹125.33 Crore |
| Total Income | ₹146.11 Crore | ₹181.37 Crore | ₹135.52 Crore |
| EBITDA | (₹101.71 Crore) | (₹79.49 Crore) | (₹58.79 Crore) |
| Profit Before Tax (PBT) | (₹105.35 Crore) | (₹89.54 Crore) | (₹68.87 Crore) |
| Profit After Tax (PAT) | (₹105.37 Crore) | (₹89.60 Crore) | (₹68.88 Crore) |
| Net Worth | ₹74.11 Crore | ₹59.26 Crore | ₹18.92 Crore |
| Total Borrowings | ₹0.62 Crore | ₹31.56 Crore | ₹51.85 Crore |
Droom reported revenue from operations of ₹135.97 crore in FY2019, ₹172.17 crore in FY2020, and ₹125.33 crore in FY2021. Total income was ₹146.11 crore, ₹181.37 crore, and ₹135.52 crore respectively. The company reported losses for each of these years, while EBITDA remained negative. Investors should assess these results together with the company’s asset-light model, growth investments, proposed IPO proceeds, and future path to profitability.
Droom IPO Key Performance Indicators (KPIs)
Key Performance Indicators help investors assess profitability, operating efficiency, financial strength, capital utilisation, and valuation-related measures. Droom’s DRHP reported negative return ratios and negative EBITDA margins for the financial years presented, reflecting the company’s historical losses.
| KPI | Value |
| Return on Equity (ROE) | -364.11% |
| Return on Capital Employed (ROCE) | -167.90% |
| Return on Net Worth (RONW) | -364.11% |
| EBITDA Margin | -43.38% |
| PAT Margin | -50.83% |
| Debt-to-Equity Ratio | 2.74 |
| Earnings Per Share (EPS) | (₹5.21) |
| Net Asset Value (NAV) Per Share | ₹1.43 |
| Price to Earnings (P/E) | Not Applicable |
The company’s historical financial ratios reflect negative profitability and return measures. Return on equity, return on capital employed, and return on net worth were negative in FY2021, while the debt-to-equity ratio was above 2x based on the DRHP figures. Investors should review these indicators together with the company’s business strategy, proposed use of funds, competitive environment, and final IPO valuation.
Objects of the Droom IPO
The company intends to utilise the net proceeds from the fresh issue for the following purposes:
- Funding organic growth initiatives, including expansion into Tier 3 and Tier 4 cities in India and selected international markets.
- User acquisition and retention, sales, marketing, distribution, branding, and investments in technology and platform infrastructure.
- Funding inorganic growth initiatives, including potential acquisitions and strategic investments.
- General corporate purposes, subject to the applicable limit and finalisation of the offer terms.
The DRHP proposed ₹1,150 crore for organic growth initiatives and ₹400 crore for inorganic growth initiatives. The exact amount available for general corporate purposes and the final net proceeds were to be determined after finalisation of the offer price and other issue terms.
Droom IPO Listing Performance
The Droom IPO has not yet been listed. Therefore, listing price, listing gain, and listing gain percentage are not available. The company has proposed listing its equity shares on the BSE and NSE.
| Particular | Value |
| Listing Exchange | BSE & NSE |
| Listing Date | |
| Issue Price | |
| Listing Price | |
| Listing Gain | |
| Listing Gain (%) |
Listing performance will be available only after the company completes the IPO process and its shares commence trading on the stock exchanges. Until then, investors should rely on the final offer documents rather than unofficial estimates of listing performance.
Droom IPO Subscription Status
The subscription figures are not available because the Droom IPO has not opened for public bidding. Category-wise subscription data will be known only after the company announces the final IPO schedule and the bidding period begins.
Droom IPO Subscription
| Investor Category | Subscription |
| Qualified Institutional Buyers (QIB) | |
| Non-Institutional Investors (NII) | |
| Retail Individual Investors (RII) | |
| Employee Category | |
| Total Subscription |
Final subscription figures for QIB, NII, retail, employee, and total applications will be updated after the IPO opens and closes.
Droom IPO Review
Droom Technology Limited operates an asset-light automobile e-commerce platform that combines online vehicle transactions with technology-driven products and services. Its model covers multiple stages of the automobile transaction journey, including discovery, valuation, certification, financing, insurance, and delivery.
The company’s DRHP highlights its pure-play online model, technology and data science capabilities, broad vehicle selection, and ecosystem approach as important business characteristics. As of September 30, 2021, the company reported more than 1.15 million vehicle listings across its platform and more than 278,807 used vehicles listed across 11 categories in 1,151 Indian cities.
The proposed IPO proceeds are intended to support organic and inorganic growth, including expansion into additional Indian cities and selected international markets, user acquisition, marketing, technology investment, and acquisitions. The auto e-commerce market information cited in the DRHP also pointed to increasing digital adoption and a growing role for online platforms in vehicle transactions.
However, investors should consider the company’s historical losses, negative EBITDA, dependence on technology infrastructure and data, competition in automobile e-commerce, dependence on attracting buyers and dealers, cybersecurity and data privacy risks, regulatory changes, and the uncertainty associated with planned acquisitions and future expansion.
Droom’s IPO assessment will depend on the final price band, issue structure, updated financial information, use of proceeds, valuation, and the company’s ability to improve operating performance and execute its growth strategy. Investors should review the final RHP and other official disclosures before making an investment decision.
Droom IPO Strengths
- Market presence in pure-play automobile e-commerce with a completely online transactional model as described in the DRHP.
- Technology and data science capabilities supporting vehicle discovery, valuation, certification, financing, insurance, and transactions.
- Asset-light business model that does not require the company to own vehicles listed on its platform or operate physical retail stores.
- Broad vehicle selection and a multi-product ecosystem serving buyers, sellers, dealers, and enterprise customers.
- Proposed expansion into Tier 3 and Tier 4 cities and selected international markets.
- Potential to benefit from increasing digital adoption and growth of online vehicle transactions.
Droom IPO Risk Factors
- The company has reported historical losses and negative EBITDA in the financial years covered by the DRHP.
- The business depends heavily on proprietary technology, data science, website and mobile applications, and uninterrupted platform availability.
- Cybersecurity incidents, data breaches, or unauthorised access to user or company data could adversely affect the business and reputation.
- The company operates in a competitive automobile and auto e-commerce market and depends on attracting and retaining buyers, sellers, and dealers.
- The proposed inorganic growth strategy involves acquisitions for which specific targets had not been identified in the DRHP, creating execution and integration uncertainty.
- Changes in e-commerce, data protection, financial services, insurance, taxation, foreign investment, or other regulations may affect business operations and compliance costs.
Droom IPO Promoters
Sandeep Aggarwal and Droom Pte. Ltd. are the promoters of Droom Technology Limited. As disclosed in the DRHP, the promoters and nominees of Droom Pte. Ltd. held 100% of the company’s pre-Offer issued, subscribed, and paid-up equity share capital as of the DRHP date.
Droom IPO Promoters Details :
| Promoter | Designation |
| Sandeep Aggarwal | Promoter |
| Droom Pte. Ltd. | Promoter |
Droom IPO Management Team
The company’s management team includes experienced professionals across technology, finance, strategy, marketing, product, legal, and business operations. The DRHP identifies Sandeep Aggarwal as Chairman, Whole-time Director and Chief Executive Officer, Amarpreet Singh as Whole-time Director and VP-Finance, Varun Sethi as Chief Financial Officer, and Anil Dwivedi as Company Secretary and Chief Compliance Officer.
| Name | Designation |
| Sandeep Aggarwal | Chairman, Whole-time Director & Chief Executive Officer |
| Amarpreet Singh | Whole-time Director & VP-Finance |
| Varun Sethi | Chief Financial Officer |
| Anil Dwivedi | Company Secretary & Chief Compliance Officer |
Droom IPO Registrar Details
The registrar is responsible for processing IPO applications, finalising the basis of allotment, crediting equity shares to successful applicants, initiating refunds, and handling investor-related services. The DRHP names KFin Technologies Private Limited as the registrar to the offer.
| Particular | Details |
| Registrar Name | KFin Technologies Private Limited |
| Website | https://www.kfintech.com |
| IPO Allotment Status | |
| Email ID | [email protected] |
| Contact Number | +91 40 6716 2222 / 1800 309 4001 |
Droom IPO Lead Manager Details
The Book Running Lead Managers are responsible for managing the IPO process, coordinating regulatory requirements, assisting with issue marketing and execution, and supporting the company through the public issue process.
| Particular | Details |
| Lead Managers | ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Private Limited and Nomura Financial Advisory and Securities (India) Private Limited |
Droom Technology Limited Contact Details
| Particular | Details |
| Company Name | Droom Technology Limited |
| Registered Office | 90/31B, First Floor, Malviya Nagar, New Delhi – 110017, Delhi, India |
| Website | https://droom.in/ |
| Email ID | [email protected] |
How to Check Droom IPO Allotment Status
Investors can check the IPO allotment status after the basis of allotment is finalised through the registrar’s official allotment portal or the BSE IPO portal. Since the Droom IPO has not yet opened, allotment status is currently unavailable.
Through KFin Technologies Private Limited
- Visit the official KFin Technologies IPO allotment portal.
- Select Droom Technology Limited IPO from the IPO list when it becomes available.
- Choose PAN Number, Application Number, or DP/Client ID, as applicable.
- Enter the required details.
- Click Submit to view the allotment status.
Through BSE
- Visit the official BSE IPO allotment page.
- Select Droom Technology Limited IPO from the list of IPOs when available.
- Enter your PAN Number or Application Number.
- Complete the verification process if required.
- Click Search to view the allotment result.
Droom IPO Conclusion
Droom IPO represents a proposed public issue by Droom Technology Limited, a technology and data science company operating an online automobile marketplace and a wider ecosystem of vehicle-related services. The proposed issue comprises a fresh issue of up to ₹2,000 crore and an OFS of up to ₹1,000 crore, based on the DRHP.
The company has an asset-light model, technology-driven products, a broad vehicle selection, and plans to use fresh issue proceeds for organic and inorganic growth. At the same time, its historical financial statements show losses and negative EBITDA, while the business remains exposed to technology, cybersecurity, competition, regulatory, and execution risks.
A detailed assessment should consider the final price band, lot size, IPO dates, updated financial performance, valuation, use of proceeds, competitive position, and future business strategy once the final offer documents are available.
Droom IPO FAQs
What is Droom IPO?
Droom IPO is the proposed Mainboard public issue of Droom Technology Limited, comprising a fresh issue of up to ₹2,000 crore and an Offer for Sale of up to ₹1,000 crore based on the company’s DRHP.
What is the price band of Droom IPO?
The Droom IPO price band has not been announced. The price band will be disclosed in the final offer documents before the IPO opens.
What is the issue size of Droom IPO?
The proposed total issue size is up to ₹3,000 crore, comprising a fresh issue of up to ₹2,000 crore and an Offer for Sale of up to ₹1,000 crore.
When will the Droom IPO open?
The Droom IPO opening date has not been announced.
When will the Droom IPO close?
The Droom IPO closing date has not been announced.
On which stock exchanges will Droom shares be listed?
Droom Technology Limited has proposed listing its equity shares on the BSE and NSE.
Who is the registrar for the Droom IPO?
KFin Technologies Private Limited is named as the registrar to the offer in the DRHP.
What is the face value of Droom IPO shares?
The face value of each equity share is ₹1.
What does Droom Technology Limited do?
Droom Technology Limited operates an online automobile e-commerce platform and a technology-driven ecosystem covering vehicle discovery, valuation, certification, financing, insurance, transaction facilitation, and delivery.
What are the objects of the Droom IPO?
The company proposes to use the fresh issue proceeds for organic growth initiatives, inorganic growth initiatives, and general corporate purposes, with ₹1,150 crore proposed for organic growth and ₹400 crore proposed for inorganic growth in the DRHP.
