IndiaMART shifts focus to buyers from sellers as it targets Rs 350 crore revenue this fiscal

The Economic Times

NEW DELHI: Business-to-business online marketplace IndiaMART, which connects buyers and suppliers, plans to focus on more than 10,000 companies that it has identified as “promising buyers”. The list includes companies such as HUL, Indian Oil Corporation, Reliance Industries and Tata Group which purchase commercial raw materials through the online platform and have a potential to generate revenue of Rs 100 crore for IndiaMART, director Dinesh Gulati said.

The company has set up a dedicated team of experts under the leadership of Mudit Khosla to handle enquiries on buying and selling from these clients, Gulati said.

The focus on buyers marks a strategic shift on part of Indiamart since the company has followed a seller-centric approach till now to expand its business. “They contribute less than 10% to our revenues but we see humungous potential in them and thus expect their share to go up to 25-30% of our existing portfolio,” said Gulati.

IndiaMART, which has been growing at 80% a year, is targeting revenue of Rs 350 crore in the current fiscal.

The B2B portal receives 7 million enquiries and has 1.7 million sellers in its list. Its mobile app generates 54% of the total traffic. The company plans to boost the number of mobile app downloads to 5 million from 2 million at present.

The recently launched e-commerce portal Tolexo, which caters to the demand of office materials such as power tools, LED lighting, safety shoes, etc., is also an add-on strategy to increase revenue, Gulati said.

Such initiatives require funds and the company is open to private equity or venture capital funds, he said. The company may even consider an initial public offering, he indicated.

According to analysts, IndiaMART could be valued at about Rs 1,000 crore.