IndiaMART.com could become the second ecommerce company in the country to come out with an initial public offering (IPO) after Ahmedabad-based Infibeam Incorporation raised Rs 450 crore.
The Noida-based company is in early talks with investment bankers to raise as much as Rs 500 crore via the share sale, two people with direct knowledge of the matter told ET.
A spokesperson from IndiaMART.com confirmed the plan. The final details are yet to be worked out.
“We’re working on the IPO process. There are several factors that we are evaluating – the company’s own readiness to go for an IPO, the regulatory approvals and the market sentiment,” the spokesperson said.
IndiaMART offers an online platform for small and medium enterprises, large companies and individuals to transact. The company was founded by Dinesh Agarwal and Brijesh Agrawal in 1996.
“IndiaMART is a cash-positive business that has grown at a CAGR (compounded annual growth rate) of 40 per cent over the last five years,” the company said. Its revenue exceeded Rs 300 crore in the previous fiscal with a gross merchandise volume of about Rs 30,000 crore.
According to the company’s website, the existing investors include Intel Capital, Amadeus Capital, WestBridge Capital and Quona Capital. It offers a platform and tools to over 2.6 crore buyers to search from over 3.3 crore products and get connected with over 22 lakh competitive suppliers.
The ecommerce company has over 3,100 employees located across 65 offices in the country.
Infibeam was the first Indian online retailer to go public through an IPO in March. The offer was oversubscribed 1.1 times. Since listing in April, Infibeam shares have gained about 20 per cent.
The ecommerce space has garnered interest from investors, although there is a view that the associated risks are high.