1996 Dinesh Agarwal and Brijesh Agrawal began IndiaMART with just Rs 40,000. Only some used the internet in India then, but they saw its potential. Now, IndiaMART is India’s top B2B platform and second globally. For 25 years, they’ve made online buying easier for people, small businesses, and big companies.
Indiamart Company Details
| Origin Country | India |
| Established year | 1996 |
| CEO | Dinesh Agarwal |
| Headquarters | Noida, India |
| Founder | Dinesh Agarwal & Brijesh Agarw |
| Chairman | Mr. Vivek Narayan Gour |
| Products | E-commerce |
| Number Of employees | 5,186+ |
| Website | https://indiamart.com/ |
IndiaMART, a top B2B online company in India, links sellers and buyers with a big 60% market share. It partners with Tata, Airtel, Hyundai, Bosch, Canon, and others, making its presence stronger. It trades in clothes, furniture, electronics, and building gear. With 24 years of experience, it builds trust and visibility for buyers and sellers. IndiaMART has grown into various areas, as seen in its operational branches.
Business and Revenue Model:
IndiaMART, the oldest B2B online marketplace, operates on a subscription model mainly designed for suppliers. While buyers enjoy free access, IndiaMART generates its primary revenue through two key channels:
Seller Subscription Fees: Suppliers pay a subscription fee to utilize IndiaMART’s platform for conducting business transactions, enhancing product visibility, and expanding customer outreach.
Request for Quote (RFQ) Sales: IndiaMART simplifies the buying process by offering a “request for quote” feature. Sellers pay fees when responding to these inquiries, contributing to the overall revenue of the platform. This dual-income approach helps sustain IndiaMART’s operations and support its continuous growth in the B2B e-commerce landscape.
Payment Services: The platform earns by assisting in transactions and handling payments, making it easier for businesses to buy and sell.
Ads Income: Businesses can advertise on IndiaMART, providing an additional revenue stream for the platform.
This mix of income sources, including subscription fees, RFQ sales, payment services, and ads, ensures IndiaMART’s financial stability. Importantly, it allows buyers to access the platform for free while supporting its operations and growth.
Funding and Investors:
IndiaMART got $40.8 million from four rounds of funding. They went public with an IPO in June 2019, which got noticed in the market. In the IPO, they got bids for almost 36 times more shares than they had, showing investors believed in IndiaMART’s growth. This successful IPO strengthened IndiaMART, proving investors are interested in its journey.
Growth and Revenues:
IndiaMART’s journey is impressive. Starting as a small startup, it has become the largest B2B e-commerce player globally. Here’s more detail:
Big Network: They connect many businesses, bringing together over 143 million buyers and 6.4 million sellers. This extensive network is a key strength.
Lots of Products: IndiaMART offers users an extensive range of choices with over 71 million products and services. This diverse array caters to various business needs.
Top Spot: Holding a substantial 60% market share in India’s online B2B classified space, IndiaMART is the go-to platform, demonstrating its dominance and wide-reaching influence. This success is a testament to their significant impact on the B2B e-commerce landscape.
Digital Engagement: Many people are using their website and app—259 million hits in the last quarter of 2021. That’s a big online user base.
Agile Expansion: They grew fast, opening 52 offices in 52 weeks. This helped them increase sales tenfold in just a year.
Taking Care of Employees: IndiaMART pays salaries weekly, making work flexible and supportive. They got this idea from successful practices in countries like New Zealand, the United States, Hong Kong, Australia, and more. This way of taking care of employees works well globally.
IndiaMART’s Financials Revenue:
IndiaMART’s recent financial results for Q4 FY22 are positive:
IndiaMART’s recent earnings are positive. This suggests that the company experienced financial growth, indicating increased income and a favorable performance in the recent quarter. Customer Increase: the number of paying customers increased by 11%, showcasing that more businesses are using IndiaMART’s services. These results indicate that the company did a good job expanding its reach to more people. They attracted more customers, and as a result, their revenue increased.
This fits a pattern we saw in FY21’s quarters. In Q4 FY22, IndiaMART earned Rs 57 crore before taking off expenses (EBITDA). But, the part of earnings they keep after expenses (EBITDA margin) dropped to 28%, down from 48% in Q4 FY21.
Concluding Note:
IndiaMART did well recently, earning more and getting more customers. But profits went down. Last year, they grew a lot in both money earned and profit. Even with challenges, IndiaMART is still a big player in B2B e-commerce, showing its lasting impact.
