IndiaMART to acquire Busy Infotech for Rs 500 Crores

Also announced participation in Series B Funding Round of Vyapar

Leading B2B marketplace, IndiaMART on Tuesday said it is acquiring the accounting software company Busy Infotech Pvt Ltd for a cash consideration of ₹500 crores. The B2B marketplace also said that it has participated in the Series B funding round of Simply Vyapar Apps Ltd.

In a regulatory filing, the company said, “IndiaMART InterMESH Limited has entered into an agreement to acquire 100% paid-up capital of Busy Infotech Private Ltd (BUSY). Subsequent to the said acquisition, BUSY shall become the wholly-owned subsidiary of the company.”

“The cost of the acquisition is up to ₹500 crore for acquiring 100 percent paid-up capital in BUSY i.e. 45,000 equity shares (having a face value of ₹10) at a premium of ₹1,11,101 per equity share from the existing shareholders,” the regulatory filing added.

Incorporated in 1997, Busy Infotech is one the largest accounting software companies in the country with a pan-India presence. It had revenue of Rs 42.4 crore and a profit after tax of Rs 11 crore in the fiscal ended March 31, 2021.

“Busy has been an established brand in the Indian accounting landscape for the last 25 years. Their value proposition fits well with Indiamart’s long-term objective of making doing business easy for Indian businesses,” said Dinesh Agarwal, founder and managing director of Indiamart, said in a statement. “This acquisition augments Indiamart’s value proposition, and given our large customer base as well as market understanding, we are confident of taking Busy to the next level.”

Meanwhile, the B2B marketplace also said that it has participated in the Series B investment round of Simply Vyapar Apps Pvt Ltd of ₹217.5 crores. The round has been led by Westbridge Capital, with the participation of existing investor India Quotient.

“As part of the transaction, IndiaMART has acquired shares for an aggregate investment of ₹61.55 crores, via a mix of primary and secondary share purchases. Post this round, IndiaMART shall hold 27 percent in Vyapar on a fully diluted basis,” the company added.

Vyapar offers a comprehensive GST Billing, accounting, and inventory management product for small businesses allowing them to digitize their business operations. It has over one lakh paying customers for its product. IndiaMART had previously led Vyapar’s Series A Investment Round in September 2019, by investing ₹31.2 crores for a 26 percent stake in the company.

Vyapar offers a comprehensive GST Billing, accounting, and inventory management product for small businesses allowing them to digitize their business operations. It has over one lakh paying customers for its product. IndiaMART had previously led Vyapar’s Series A Investment Round in September 2019, by investing ₹31.2 crores for a 26 percent stake in the company.

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