Droom, India’s first automobile marketplace, has roll out a deal to strengthen its credit and auto loans business, for which the Gurugram-based platform has acquired Xeraphin Finvest in an all-cash deal, reported Inc42.
According to sources, the acquisition was made for an estimated $3-3.5 million by Droom.
Besides enlarging it credit and auto loans business, the deal will also help Droom expand its fintech unit Droom Credit and Xeraphin’s acquisition is likely to drive loan disbursals for customers purchasing pre-owned vehicles.
Sandeep Aggarwal, founder and CEO at Droom, said that the acquisition will further bolster Droom’s capabilities in offering loans at a larger scale.
“It will ensure the maximum convenience and minimum hassles for company’s primary stakeholders, thereby building the narrative of success for Droom further,” he added.
Droom was founded by Sandeep Aggarwal in 2014 and headquartered in Gurugram. It is India’s first and only online marketplace for buying and selling new and used automobiles. The platform offers broad catalog of vehicles and deals in all automobile categories; everything from bicycles to planes.
The company, also offers widest collection of used vehicles at best prices from verified sellers only.
Droom claimed that it has so far processed over 10k loans in the last 12 months.
Aggarwal further added that Droom is in the market to raise $250 Mn in a pre-IPO round. It plans to get listed on Nasdaq in 2021 through its Singapore-based holding entity.
Some of the significant companies in the segment include CarTrade, Quikr,CarDekho, Cars24, CarNation, Carwale, Olx among others.