Online automobile marketplace Droom Technology Pvt Ltd has withdrawn its proposed initial public offer, which was looking to raise up to Rs 3,000 crore (around $361.296 million), amid tough market conditions.
However, the company declined to make any comment on the development.
According to a notification issued by market regulator Securities and Exchange Board of India (SEBI), Droom’s issue was withdrawn on Wednesday last week.
The unicorn, which counts Beenext, Digital Garage and Lightbox, as among its investors, had filed the necessary paperwork with the SEBI in November last year. It was planning to list on the public exchanges, raising capital through a combination primary raise of Rs 2,000 crore and a secondary offer for sale of 1,000 crore.
It planned to use about Rs 1,150 crore of the net proceeds towards organic growth initiatives, Rs 400 crore towards inorganic growth,and the remaining proceeds for general corporate purposes.
Droom competes with the likes of Truebil, CarDekho, Carwale and CarTrade.
In August, CarTrade had debuted on the stock exchanges with an issue size of about Rs 3000 crore. It was oversubscribed by 20.4 times. The company’s share price since has fallen over 30%.
Gurugram-based Droom was founded in 2014 by Sandeep Aggarwal, who also co-founded e-commerce portal ShopClues. It facilitates online buying and selling of automobiles through its platform. The company has built an entire ecosystem around used automobiles, including for aspects like orange book value, vehicle inspection, vehicular discovery and history.
In July last year, Droom had turned unicorn after raising $200 million in a funding round at a valuation of $1.2 billion. The funds were being raised from new investors including 57 Stars and Seven Train Ventures as well as existing investors.
Prior to this, the company raised $30 million in its Series E funding round in October 2018.
