Droom claims to have grown 1500x in 16 months
Online automobile marketplace Droom founder-CEO Sandeep Aggarwal in a conference in New Delhi claimed the company has grown around 1472x between January 2015 and April 2016.
"Unlike most e-commerce companies, we're in a high gross margin business. Almost 100% of the money we make goes into our margins. While most e-commerce companies spend around 17-20% of their GMV on marketing, ours is around 5%", Aggarwal said.
Droom claims to have a burn rate of 5.5% of its GMV and a gross margin of 98.4%. The company's annualized GMV stands at $160 mn.
India's automobile market is currently the fifth largest in the world, and pegged at $125 bn. Its expected to grow up to $250 bn by 2020.