Indiamart Intermesh Share Price

IndiaMART InterMESH Ltd

IndiaMART InterMESH Limited, India's leading online B2B marketplace, has been a pioneer in transforming how businesses operate and connect. Incorporated as a public limited company on September 13, 1999, the company began its journey by acquiring the operations of InterMESH Systems, a sole proprietorship managed by Dinesh Chandra Agarwal. Prior to its incorporation, Agarwal had been operating the website www.indiamart.com, which laid the groundwork for IndiaMART's future growth. Through an agreement dated January 1, 2000, IndiaMART acquired the assets and liabilities of InterMESH Systems for ₹100 million, which was paid via 8,000,000 equity shares and 2,000,000 non-cumulative redeemable preference shares. This strategic move established the foundation for what would become India's largest online B2B marketplace.

Emergence as India's Largest B2B Marketplace

While IndiaMART's roots trace back to 1996, its official incorporation in 1999 marked the beginning of its structured operations. As a two-way discovery platform, IndiaMART connects buyers and suppliers across a wide range of product categories and geographies. By fiscal 2017, IndiaMART had captured approximately 60% of the online B2B classifieds market in India, as noted in a report by KPMG. Its platform enables businesses to locate suppliers, view products, and post requests for quotes (RFQs), making it an invaluable resource for domestic and international enterprises.

Over the years, IndiaMART has achieved significant milestones in user engagement. The company recorded 325.8 million, 552.6 million, and 723.5 million visits in fiscals 2017, 2018, and 2019, respectively. A growing percentage of these visits came through mobile devices, with mobile traffic accounting for 76% of total traffic by 2019. This demonstrates IndiaMART’s ability to adapt to shifting user preferences and its focus on improving accessibility through mobile-optimized platforms.

Growth in Buyers, Suppliers, and Product Listings

IndiaMART has consistently expanded its user base and product offerings. By March 31, 2019, it had amassed 82.7 million registered buyers and 5.55 million supplier storefronts. These suppliers listed a total of 60.73 million products, with 76% of listings comprising tangible goods and 24% being services. The company's ability to attract and retain users is further reflected in its repeat buyer rate, which reached 55% by 2019.

IndiaMART’s platform covers 54 industries, making it a comprehensive marketplace for businesses of all scales. The company’s wide reach is supported by its robust analytics and algorithmic matchmaking, which leverage buyer-supplier behavior to enhance discovery and engagement. This innovative use of technology has not only driven repeat business but also established a self-sustained cycle of trade enquiries, bolstering IndiaMART's market position.

Strategic Investments and Acquisitions

IndiaMART has strategically invested in technologies and companies that complement its core business. In 2020, it acquired a 26% stake in Vyapar, a mobile-based accounting software for small businesses. The same year, the company went public, raising ₹4,755.89 million through an Initial Public Offering (IPO). As of March 31, 2021, IndiaMART had over 125 million registered buyers and 6.5 million suppliers, spread across 97,000 categories and 56 industries.

During the fiscal year 2022, IndiaMART expanded its portfolio by acquiring Busy Infotech, a prominent accounting software provider, for ₹5,000 million. The company also increased its stake in Vyapar to 27%. These acquisitions underscored IndiaMART’s commitment to enhancing its value proposition by integrating complementary services. Additionally, the launch of IndiaMART Verified Export Services further reinforced its position as a key enabler for export-oriented businesses.

IndiaMART’s focus on innovation has been pivotal in maintaining its leadership in the market. The company has continually upgraded its platform with advanced technologies, expanding its product, sales, and service capabilities. This included hiring 1,000 new employees in FY22 to strengthen its operational base and launching exclusive services to support exporters.

Continued Expansion and Market Leadership

By March 31, 2023, IndiaMART had registered 170 million buyers and 7.5 million suppliers, with 202,690 paying subscription suppliers. The company’s listings expanded to 83 million products and services across 95,000 categories and 56 industries. IndiaMART’s ability to scale and adapt to market demands has solidified its position as a trusted platform for businesses across India.

The company’s acquisition strategy has remained aggressive. In FY23, it acquired controlling stakes in Livekeeping, a Tally-on-mobile application, and expanded its portfolio of associate companies, including Mobisy, Industry Buying, and Realbooks. These acquisitions have diversified IndiaMART’s offerings, enabling it to cater to a broader spectrum of business needs.

IndiaMART has also focused on fostering strategic partnerships to strengthen its ecosystem. By holding significant stakes in companies like Shipway Technology and EasyEcom, IndiaMART has positioned itself as a comprehensive platform capable of meeting the diverse requirements of modern businesses. These investments highlight IndiaMART’s commitment to creating a seamless experience for buyers and suppliers while enhancing its platform's efficiency.

Leveraging Market Trends

IndiaMART’s success is deeply rooted in its ability to capitalize on emerging market trends. The rapid growth of internet penetration in India has facilitated a shift towards online commerce, with businesses increasingly adopting digital platforms to expand their reach. Unlike other countries, India lacks a dominant multi-brand offline retailer for business products, which has amplified the importance of online marketplaces like IndiaMART.

According to KPMG, the rise of B2C e-commerce has had a cascading effect on the B2B sector, with an increasing number of businesses moving online. IndiaMART’s platform bridges this gap by providing access to a national pool of suppliers, standardized product information, and transparent pricing. The company’s focus on data-driven insights and behavioral analytics has further enhanced its ability to deliver relevant and efficient solutions for businesses.

Enhancing Shareholder Value

IndiaMART’s commitment to delivering value extends to its shareholders as well. The IndiaMART InterMESH share price reflects the company’s strong market position and investor confidence. By consistently achieving growth through innovation, strategic investments, and an expanding user base, IndiaMART has established itself as a reliable investment avenue in the digital commerce space.

As India’s B2B e-commerce market continues to grow, IndiaMART is well-positioned to capitalize on these opportunities. Its comprehensive marketplace, backed by advanced technology and a robust user base, ensures that it remains at the forefront of facilitating commerce across industries and geographies. With its strong foundation and forward-looking strategy, IndiaMART InterMESH Limited is poised for sustained success in the years to come.

Quick overview

IndiaMART InterMESH Limited has established itself as a leader in India's online B2B marketplace sector by leveraging technology, innovation, and strategic investments. With continuous growth in its user base, extensive product listings, and a robust network of buyers and suppliers, the company has made significant contributions to the digital transformation of Indian commerce. Its strategic acquisitions and focus on enhancing platform efficiency position it as a key player in the evolving B2B e-commerce landscape, with a promising future in addressing diverse business needs across industries.