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IndiaMart’s founder Dinesh Agarwal explaining the recent trends in e-commerce

MSME Exchange 2021: Tech for all

<ul><li><keyword id="381854" type="General" weightage="20" keywordseo="indiamart" source="Orion">IndiaMart</keyword>’s share price is now above the ₹8,000-mark, compared to ₹1,800 in March 2020.</li><li>The B2B e-commerce company now sits on a market cap of ₹27,483.8 crore ($3.7 billion).</li><li>IndiaMart competes with Tencent-backed Udaan and publicly listed company Just Dial, which was recently acquired by Reliance Industries.</li></ul>If you invested ₹25,000 in <keyword id="5802502" type="General" weightage="20" keywordseo="indiamart-intermesh" source="Orion">IndiaMart InterMesh</keyword> Limited last year in March, your shares would now be worth over ₹1,21,000. It wasn’t a long time ago that IndiaMart’s shares were valued at ₹1,846 (March 27, 2020), right after India stepped into the pandemic-induced lockdown. Along with these restrictions came massive supply chain disruption that left Indian industry — from manufacturing to healthcare — in a void. IndiaMart has been gaining from it since then. A business model that allows buyers and sellers to interact and cash in on their product needs — without physical contact — has allowed IndiaMart to garner the interest of more customers and get confidence of retail investors amidst the pandemic. IndiaMart currently competes with Tencent-backed <a href="https://www.businessinsider.in/business/startups/news/indian-b2b-e-commerce-startup-udaan-raises-280-million-valuation-jumps-to-over-3-billion/articleshow/80132753.cms">Udaan</a> (valued at $3 billion) and publicly listed company Just Dial (market cap of $845 million), which was recently <a href="https://www.businessinsider.in/stock-market/news/mukesh-ambanis-reliance-retail-to-buy-majority-stake-in-justdial-vss-mani-to-continue-as-md-and-ceo/articleshow/84477000.cms">acquired </a>by Reliance Industries. IndiaMart’s share prices were above ₹8,900 as of September 8, 2021. The company’s share prices have increased 24% in the last month, from ₹7,236 on August 9. It now sits on a market capitalisation of ₹27,483.8 crore ($3.7 billion). <div type="image" title="Indiamart share price has gone up nearly five times in last 18 months and the record profit is only a part of what’s driving it" msid="86058098" hostid="261"></div> Jyoti Roy, equities strategist at Angel Broking, told Business Insider India that COVID-19 has shifted B2B commerce trends, from offline to online, and IndiaMart is strategically positioned to cater to such trends. Structural changes have happened in terms of supply and demand, and how these needs are met, he added. As COVID-19 has forced micro, small and medium enterprises (MSME) into the digital arena, all companies that enable such transformation have benefited from it. In general, any newage business — like Affle India or Route Mobile — that lays more stress on digital or digitisation have benefited in the last one year, Roy added. Deven R Choksey, managing director of KR Choksey Investment Managers, noted, “everyone wants to make investments in these kinds of businesses when they are not losing money. In a business-to-customer (B2C) model ecommerce platform loses money.” <div type="image" title="Indiamart share price has gone up nearly five times in last 18 months and the record profit is only a part of what’s driving it" msid="86058074" hostid="261"></div> Founded in 1996, by Dinesh Agarwal and Brijesh Agrawal, IndiaMart currently enables business and discovery for MSMEs. It helps these small businesses with buyer and seller negotiations as well as quotation and invoicing of products. The company has been planning to expand further into the commerce side of the business, with payments, logistics/tracking and transactional financing. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Key points to note about IndiaMart’s performance in April to June quarter of FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndiaMart reported a revenue of ₹210 crore, with a new profit of ₹91 crore. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The company had 66 lakh suppliers on its platform. Its traffic grew to 248 million (24.8 crore). </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">It witnessed organic growth and did not incur any advertising spends. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The company had 146,000 paid suppliers. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Average revenue per user (ARPU) increased to ₹49,700. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">It reported a revenue of ₹750 crore in FY2021. </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: IndiaMart’s financial report, Motilal Oswal “Apart from collections and revenue growth, IndiaMART has shown higher resilience on the margin front. While we concur that margins at current levels are unsustainable, it would see positive benefits from cost optimisation and operating leverage in the long term,” Motilal Oswal said in a <a href="https://www.motilaloswal.com/site/rreports/637628892983928419.pdf">report </a>published in July 2021. More small businesses are going digital, placing orders and finding new customers online. The company has over 70% market share in the underlying industry, the report noted. What’s better, the buyers and sellers on IndiaMart are less sensitive to pricing by the platform, according to Motilal Oswal, allowing the company to steadily increase its average revenue per user. ALSO WATCH: IndiaMart’s founder Dinesh Agarwal explaining the recent trends in e-commerce <div type="Video" msid="86061546" hostid="261" title="IndiaMart’s founder Dinesh Agarwal explaining the recent trends in e-commerce" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=86061546"></div> Motilal Oswal, in the report published before Reliance’s acquisition of Justdial, added, “IndiaMART would continue to work on gaining buyer and supplier traction to emerge as the market leader in this space.” Meanwhile, Roy of Angel Broking said that B2B e-commerce is still at an nascent stage but there is a lot of growth potential for each company over the next three-five years. Therefore, it’s too early to comment on competition at the moment. He also noted that the new age digital businesses have the potential to be valued much higher than the traditional information technology (IT) business that enjoys supremacy today. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/zomato-policybazaar-investor-info-edge-invested-in-nearly-2-startups-every-month-in-2021/articleshow/86028438.cms">Zomato, PolicyBazaar investor Info Edge invested in nearly 2 startups every month in 2021</a> <a href="https://www.businessinsider.in/business/startups/news/byjus-bags-another-150-million-to-fund-its-acquisition-spree/articleshow/86027937.cms">Byju’s bags another $150 million to fund its acquisition spree</a> <a href="https://www.businessinsider.in/business/startups/news/zoho-corp-invests-5-million-in-medical-devices-startup-voxelgrids/articleshow/86000656.cms">Zoho Corp invests $5 million in medical devices startup Voxelgrids</a>

Indiamart share price has gone up nearly five times in last 18 months and the record profit is only a part of what’s driving it

<ul><li>In an interview with Business Insider, <keyword id="127964" type="PERSON" weightage="20" keywordseo="Dinesh-Agarwal">Dinesh Agarwal</keyword> spoke about being the first IPO after the elections and what the future looks like for IndiaMart.</li><li>IndiaMART InterMESH which is the parent company for Indiamart.com, had opened the doors for its ₹4.75 billion IPO. </li><li>Its IPO was oversubscribed 36 times.</li></ul>When IndiaMart opened its doors for an Initial Public Offering, the founder Dinesh Agarwal was apprehensive – after all, it was the first IPO after the elections with the Narendra Modi government coming back to power – and that too a tech IPO! But in two days, investors subscribed for 36 times the total number of shares on offer. Today, the stock has listed 25% over its issue price. IndiaMART InterMESH which is the parent company for Indiamart.com – one of the country’s biggest online marketplaces for businesses – is one of the country’s oldest e-commerce ventures that started in 1999. It competes with TradeIndia.com, Alibaba India and ExportersIndia.com. IndiaMart has over 82.7 million registered buyers and 5.55 million supplier storefronts across 54 industries in India at the end of March 2019. This compares to TradeIndia.com’s (founded in 1996) 4.96 million registered users today, ExportersIndia’s (founded in 1997) over 2.7 million users in India. Meanwhile, the global e-commerce giant Alibaba, which launched the India unit in 2008, has over 6 million members with 15,000 Indian SMEs on its platform. However, at IndiaMart competition isn’t a worry. “We are 16X the size of our next competition, our lead is only growing. It’s a winner takes it all kind of a market and we are getting the larger share as the market is growing,” Dinesh Agarwal, founder and CEO of IndiaMart, told Business Insider. In an interview, Agarwal said the IPO process very overwhelming but he was sure of the prospects. “We were confident about our numbers, having built a robust business and having had great numbers since the last three years. Even while the small and medium enterprises had faced temporary setbacks like demonetization, GST and then the elections, we have managed to put out our best performance,” said Agarwal. IndiaMart’s revenue has been growing at 29% per annum for three years. IndiaMart, which was founded in 1999, today claims to have a 60% market share of the online business classifieds space in India, and it focuses on providing a platform to Small &amp; Medium Enterprises (SMEs), large enterprises as well as individuals. Will the success of Indiamart’s IPO open the doors for others too? “That’s a tall claim. I think it all depends on the readiness of the company rather than the market,” he said. With a listing on the stock market, IndiaMart is now open to market scrutiny. But Agarwal is rest assured. “Our business model has been proven time and again. We know how to steer through tough times and accept newer technologies. When we started we were a desktop based company, now we are a mobile B2B company, so we have seen how to evolve with time. We have seen 5 governments too through our time!,” he said. With the IPO proceeds in its kitty, IndiaMart plans to grow bigger. “Today we are attracting larger companies like Jindal Steel, JCB Machines, who are advertising and generating leads on our platform. We have also adapted SaaS - Software as a Service - where we have developed a CRM for SMEs to manage their leads, invoice management and more,” he said. IndiaMart has also started offering payment facilitation services and Agarwal is looking at fintech as a space to grow further. “Going forward we will be looking at buyer purchase financing and SME lending as well,” he said. SEE ALSO: <a href="https://www.businessinsider.in/indiamart-ipo-subscription-data-and-competition-with-alibaba/articleshow/69930223.cms">IndiaMart, a 20-year old online marketplace and one of the country’s biggest, is selling shares as e-commerce gets more competitive</a>

Indiamart founder CEO Dinesh Agarwal celebrating a 25% jump in value at listing says Indian e-commerce is a ‘winner takes all’ market

<ul><li>Promoters are cashing out of <keyword id="381854" type="COMPANY" weightage="20" keywordseo="Indiamart">Indiamart</keyword> with the ₹4.75 billion initial public offering.</li><li>The IPO closed the first day with 50% subscription. </li><li>IndiaMart faces competition from the likes of Alibaba India.</li></ul>IndiaMart is India’s first big initial public offering (IPO) in the Narendra Modi government’s second term. At the end of the first day, the IPO has been subscribed by 50%. IndiaMART InterMESH which is the parent company for Indiamart.com – one of the country’s biggest online marketplaces for businesses – had opened the doors for its ₹4.75 billion IPO. A total of 4.88 million shares of the company are up for grabs,at a price band of ₹970-₹973 per share. The IPO will be closed for subscription on June 26. IndiaMart had also registered a compounded annual growth in revenue (CAGR) of 26% in the last three years. However, Indiamart will not receive any of the IPO proceeds. In fact, the listing is only an offer for sale (OFS) through which the promoters and shareholders will dilute 0.49 crore shares of the company. Competition in the market IndiaMart, which was founded in 1999, today claims to have a 60% market share of the online B2B Classified space in India, and it focuses on providing a platform to Small &amp; Medium Enterprises (SMEs), large enterprises as well as individuals. IndiaMart has over 82.7 mn registered buyers and 5.55 million supplier storefronts across 54 industries in India as of FY19. What’s better, there has been a growth of 21% in paid subscribers on the platform in the last three years, according to Geojit, and the number of registered buyers has grown 45% in the same period <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/442046"></div>
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 However, its competitors are far behind. Some of its competitors are TradeIndia.com, Alibaba India and ExportersIndia.com. TradeIndia.com was started in 1996 has over 4.96 million registered users today, according to the company’s official website. ExportersIndia was founded in 1997 and has over 2.7 million users in India. Meanwhile, the globally e-commerce giant Alibaba launched the India unit in 2008 and has over 6 million members with 15,000 Indian SMEs on its platform. Alibaba could soon push for growth in the Indian market too given the economy’s potential as the world’s fastest growing economy. E-commerce in India is expected to be $200 billion industry by 2026. Key risks That brings us to the biggest risks that the company could face in the near term. Aside from competition, there is a huge slowdown in overall consumption in India. “Demand slowdown for the types of products and services listed by suppliers on IndiaMart online marketplace,” was the top risk cited by Geojit in a report, followed by losses in previous years as well as high employee costs.

IndiaMart, a 20-year old online marketplace and one of the country’s biggest, is selling shares as e-commerce gets more competitive

<ul><li>The Economic Survey 2018-19 is making a case to use Aadhaar as a ‘master database’ for every citizen. </li><li>The Economic Survey 2018-19 also highlights how technology has helped plug leaks and corruption in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). </li><li>NASA successfully tests the launch abort system for its upcoming manned Moon mission, Artemis. </li><li><keyword id="127964" type="PERSON" weightage="20" keywordseo="Dinesh-Agarwal">Dinesh Agarwal</keyword>, the CEO and founder of Indiamart, is celebrating the 25% jump in the company’s valuation since its gone public. </li><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword> is collaborating with Facebook to launch a ‘digital literacy’ campaign in India claiming to be largest campaign of its kind in the country. </li></ul>This is Tech Insider’s daily dose of <keyword id="35609" type="PERSON" weightage="20" keywordseo="tech-news">tech news</keyword> — everything that’s happening in tech that you need to know about today from Business Insider and its partner publications:

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's 25% jump in value

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's IPO

There are all the right key words, in the Finance Minister’s 9 Point agenda in this budget. Focusing on governance and Ease of doing Business, education and skills, infrastructure, financial Sector and <keyword id="45031" type="PERSON" weightage="100" keywordseo="Tax">tax</keyword> reforms reflect dedication towards a pro Technology, Infra and Trade oriented year ahead. The budget intends to build robustly Agriculture and Farmers Welfare, Social Sector and Rural employment to further bridge the gap between Bharat and India. 
 
Lowering of Corporate IT rate for companies (for new manufacturing companies and SMBs) not exceeding Rs. 5 crore turnover to 25% plus surcharge, tax holiday for startups for three of five years of setting up the company, the massive investment in the road infrastructure would provide support and boost to the MSMEs, startups and our overall ecommerce industry. 
 
The Budget further strengthens the Financial System starting with the recapitalization of Banks. Since, Capital is the biggest woe for any entrepreneur, disbursement of MUDRA funds to 1,80,000 crore would add the apt backing. 
 
What makes me particularly happy is the impetus being given to Skill Development. It assures the creation of a developed ecosystem where the Young Demographic Dividend of India has ample avenues of enterprise and means of excellence. 
 
The Budget however lacks on simplicity quotient by initiating varied cesses this year unlike last year. Cess and surcharge on clean energy, for Infra and Agri, and even in Corporate tax shall prove to be raising complexities and hindrance overall. 
 (This article has been authored by Dinesh Agarwal, Founder and CEO, <keyword id="381854" type="UNKNOWN" weightage="100" keywordseo="Indiamart">IndiaMART</keyword>) 
 
Image credit: Indiatimes

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IndiaMart’s founder Dinesh Agarwal explaining the recent trends in e-commerce

Business Insider India

MSME Exchange 2021: Tech for all

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Indiamart share price has gone up nearly five times in last 18 months and the record profit is only a part of what’s driving it

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Indiamart founder CEO Dinesh Agarwal celebrating a 25% jump in value at listing says Indian e-commerce is a ‘winner takes all’ market

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IndiaMart, a 20-year old online marketplace and one of the country’s biggest, is selling shares as e-commerce gets more competitive

Sanchita Dash

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's 25% jump in value

Prabhjote Gill

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's IPO

Budget 2016 lacks on simplicity quotient but strengthens the financial system

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