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NEW DELHI: IndiaMART, an online marketplace for small and medium enterprises, is aiming to generate Rs 2,000 crore in revenue by 2020, a top executive has said.
Dinesh Agarwal, founder and CEO at IndiaMART, said the company plans to generate revenue worth Rs 1,000 crore from the SME business, the space in which it currently operates, and another Rs 1,000 crore from its new initiative, called ‘Big Buyer-Big Supplier’, under which IndiaMART is approaching big companies to use its platform for purchase or supply of goods.
“Our target over the next five years is to get 50 per cent of out total business from big businesses and the remaining 50 per cent from the SME business, which we are currently doing,” he said. “Our SME business is growing at 50 per cent every year but, I think, over a period of time, big businesses will start catering big time to our revenue.”
Agarwal said the company will have to touch a gross merchandise value (GMV) of Rs 3 lakh crore to reach the Rs 2,000-crore revenue target. GMV is a measure of the maximum price of goods and services sold on a company’s platform and is higher than actual revenue.
On an average, IndiaMART charges about 1% of the transaction value from small and medium enterprises, and half a percent from big businesses where the deal size is much bigger.
Brands that have already listed with IndiaMART under the Big Buyer-Big Supplier initiative include Jindal Steel & Power, Somany CeramicsBSE -0.17 %, Bharat Electronics LtdBSE -0.06 %, Aditya Birla Group, Reliance Industries Ltd, Larsen & Toubro, Casio, HitachiBSE 0.48 %, Apollo Hospitals, Gujarat Fluoro Chemicals, Everready Industries India, Century Tiles, Amco India, Jubilant Agri & Consumers Products, Berger Paints and Neelkamal Industries.
The ecommerce player has short listed 10,000 big companies it will be targeting for this programme. It is looking to get at least 100 such companies on board by the end of this year. In the next five years, the company plans to have 5,000 big companies onboard its platform.
IndiaMART, which claims to be a cash positive company, is targeting revenue of Rs 365 crore and GMV of Rs 30,000 crore in this fiscal year.
The company will also be spending close to Rs 300 crore in the next two years to increase its seller base and to bulk up technological capabilities.
“In the coming two years, we will be spending around Rs 300 crore on catalogue building, buyer building and ramping our product and technology. Currently, we have only 2 million suppliers on our platform, which we will double in the next two years,” said Agarwal.
IndiaMART plans to hire at least eight senior managers this year. “We are looking to hire head-channel sales, head-customer service, supplier central head and big buyer client servicing head within this year, some of whom will be joining us in two months,” said Agarwal.
The company is also looking to hire senior executives for the product technology function. “We met few people who are currently working in Silicon Valley and Berlin with technology majors like Microsoft and Intel for our product technolgy team but have not been able to finalise anything. I am personally looking to fill these positions. Product technology is the major part of what we do,” Agarwal said.
IndiaMART also has plans to go public. “We are working on the IPO. There are so many things that need to be taken care of. If we are able to access the public market timely, then we will not need to raise funds for our proposed expansion plans and activity,” he said.