IndiaMART, based in Noida, has set a target to double its revenue of Rs 1,000 crore run rate to Rs 2,000 crore by 2027. This ambitious goal is an example of how the B2B e-commerce company is aiming to grow in the next few years. To strengthen its presence in distinct domains like HRtech, Fleetx (AI-powered freight movement), Shipway (shipping solutions) and Busy Infotech (accounting software), the company has made several acquisitions. Zimyo, FleetX, Shipway and Busy Infotech are some of the examples. The company foresees a rise in revenue from new enterprises, rising from 0% to 10% by the end of FY25E.
IndiaMART asserts that its search & match-making abilities are superior to Google, and its B2B directory is better than Amazon. To enhance user experience, they use analytics and ML tools to refine searches & match-making. Furthermore, they focus on the seller’s behaviour to refine buyer-side match-making. By 2023, the company has managed to acquire a substantial portion of the B2B listings market – 60%. This translates to over 7.4 million suppliers in its network and more than 90 million products & services listings. The customer base of the company has grown consistently year on year at 15-20%, and Average Revenue Per User (ARPU) has seen an increase of 5-7%. This suggests a Compound Annual Growth Rate (CAGR) of 25% annually. At this rate, the revenue could double every 4-5 years.
IndiaMART is growing by leaps and bounds, branching out from traditional discovery services to offer things like financial accounting, logistics technology and more. It has already acquired four companies in the accounting space to facilitate this expansion. The company estimates that this market could potentially become a billion-dollar business, mainly due to the fact that small businesses require tax and accounting services. To make it more comprehensive, IndiaMART is combining logistics & tracking solutions into the platform, and examining the possibility of utilizing both subscription-based & transaction-based revenue models.
IndiaMART is aiming to expand the range of products it offers. Already, it works with 56 different categories, including industrial plants, machinery & equipment as well as construction & raw materials – which accumulate the most paying subscribers. The company is making a concerted effort to make agro and pharma categories more prevalent. To this end, they are looking to bring in more vendors from Tier II cities.
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IndiaMART currently holds the largest market share, however Udaan, TradeIndia and JustDial (owned by Reliance) have grown to become strong competitors. A recent study by ICICI Securities reveals an annual growth rate of 55.8% for the B2B e-commerce industry in India from FY23E to FY25E. Rates like these could provide enough space for multiple companies to thrive in the market, as suggested by financial analysts.
In the upcoming financial years, IndiaMART is expecting a healthy growth in paid subscribers and deferred revenue that should lead to an impressive 23% CAGR in its revenue. The introduction of technology and the transition to a formal corporate system is proving to be an advantageous situation for the company. It’s allowing India’s MSMEs to progress and helping the company to grow as well.
