IndiaMART

IndiaMART plans IPO, process to begin next fiscal

E-commerce firm Indiamart is planning to launch its initial public offer for which it will start the process next fiscal, a top official of the company today said.

“We will go for IPO soon. Basically, we are not in need to raise external money but we want to give an exit route to existing investors. Most of the equity sale will happen in secondary market,” Indiamart founder and CEO Dinesh Agarwal told at TiEcon Delhi NCR.

Existing investors of Indiamart include Intel Capital, Amadeus Capital, WestBridge Capital and Quona Capital.

“As a promoter I am looking for dilution of some stake and some investors like Intel Capital may look for partial sale of stake. That is the basic reason (for the IPO),” Agarwal said.

Indiamart started bringing small and medium enterprises (SMEs) on its platform to help them generate sales.

He said the company started making profits in last fiscal after continuous focus on expansion.

“Now we have also brought big brands like Tata, Mahindra & Mahindra, Godrej and others on our platform. We earned average revenue of Rs 30,000-40,000 per SME annually. From big players, our average revenue is Rs 3-4 lakh,” Agarwal said.

The company claims to have 40 lakh SMEs and over 100 big brands on its platform. It does not sell any product directly but provides business leads to companies.

“Our revenue has been growing in the range of 30-40 per cent annually. With big brands coming and launch of some new services, we expect our margins to increase by around 10 per cent,” Agarwal said.