Droom's loss widens amid higher expenses in FY22
Droom, an automobile ecommerce platform that lets users buy and sell used vehicles, last raised funding of $200 million in 2021.
Automobile ecommerce startup reported that its annual loss nearly doubled from a year ago on the back of higher expenses that ate into its topline.
The Lightbox Ventures-backed unicorn, which has been looking to relaunch its stock market listing bid, reported a total consolidated loss of Rs 137.1 crore for the financial year ended March 31, 2022, compared to a loss of Rs 68.9 crore in the previous fiscal.
Its total consolidated income, which rose 188% to Rs 390.2 crore, was eclipsed by a jump in its expenses, the company revealed in a ROC filing.
Droom spent Rs 527.2 crore in FY22, up 158% from the previous year, primarily due to impairment losses on financial assets and "other expenses" that include advertising and promotional expenses.
The company's expense component also included impairment losses of financial assets. Impairment losses can result from a loss in valuation or depreciation of assets.
Gurugram-based Droom has raised a total of $341 million across nine funding rounds, according to Tracxn. It was founded in 2014 by Sandeep Aggarwal to help people buy and sell used and new automobiles.
In 2021, when Droom was exploring an initial public offering (either on NASDAQ or in India), the company said it was "nearing profitability", given the momentum it had seen on its platform during the COVID-19 pandemic. However, that did not materialise as evidenced by its latest filing with the Ministry of Corporate Affairs.
The company hoped to raise Rs 3,000 crore in its IPO but withdrew it in October without citing any reasons.
Edited by Kanishk Singh