Please avoid Droom
Droom Technology’s draft IPO prospectus is a minefield of misrepresentations and missing details, important to assess the health of the business.
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Editor's note: Simplicity is not one of Droom’s virtues. To quote from the draft red herring prospectus, or DRHP, filed ahead of its IPO, this is what the company says it does: “We are a technology and data science company that facilitates automobile buying and selling online through a combination of our asset-light automobile e-commerce platform along with a technology-driven vertically integrated proprietary ecosystem of products and services for the automobile industry. Our automobile e-commerce platform, which includes our website and mobile apps, offers users convenience and a curated experience to buy and sell new and used vehicles and encompasses every element of automobile buying from searching for a vehicle, creating buying requirements, price discovery, booking, certification to purchase and financing and doorstep delivery.” The above is a load of jargon meant to either impress or perplex prospective investors. Explained in simple words, Droom is a website where buyers and sellers can purchase or sell used as well as new vehicles. Vehicles include cars and two-wheelers. Incorporated in 2014 by Sandeep Aggarwal, the founder of ShopClues (a story that ended in Aggarwal …
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