IndiaMART

IndiaMART shares jump with huge volume; JM Financial retains ‘buy’ rating

IndiaMART InterMESH shares jumped on Tuesday with large volume after JM Financial retained a ‘buy’ rating on the stock

IndiaMART InterMESH shares surged with high volume on Tuesday after JM Financial retained a ‘buy’ rating on the stock with a target price of Rs 5,100. The IndiaMART stock finished the day with a gain of 5.1 percent at Rs 5,074.3 apiece on BSE, after rising to as high as Rs 5,138.7 during the session.

A total of 52,000 IndiaMART shares changed hands on Tuesday, as against a daily average of 13,000 in the past two weeks, according to exchange data.

At the current level, the stock has retreated 47.7 percent from a 52-week high scaled in October 2021.

A ramp-up of sales is needed for the stock to deliver good growth in the near to medium term, according to the brokerage.

Hemang Jani, the Retail Equity Strategist at Motilal Oswal Financial Services, is positive on IndiaMART InterMESH shares.

In an interaction with CNBC-TV18 on Monday, he said the recent rise in IndiaMART follows a correction in the past 3-4 months and comes amid renewed buying interest in the startup theme.

Last week, BofA Securities retained an ‘underweight’ rating on IndiaMART with a target price of Rs 3,285 citing risks to estimates on rising costs. The brokerage also said that the company’s margin will be muted in Q4 on the back of employee expenses.

CNBC TV 18

IndiaMART acquires stake in Livekeeping

IndiaMART, the largest B2B marketplace of India, has announced an investment of approximately Rs. 45.98 Crores in Finlite Technologies Private Limited and acquire 51.09% stake in the company. As part of the transaction, IndiaMART will be investing Rs. 35 Crores into the company via primary infusion and purchase shares from the promoters for the remaining amount.  

Finlite Technologies under the brand name ‘Livekeeping’, offers value-added services to businesses over their existing on-premise accounting softwares, primarily ‘’Tally’’.  It provides desktop-based digital integration with on-premise accounting software which syncs the data automatically to its mobile-based application enabling the user to view their accounting data on mobile. Businesses can access, analyze and share accounting information like sales, receivables, outstanding payments on real-time through Livekeeping application. In addition, Livekeeping also offers API`s to connect on premise accounting software, with different e-commerce platforms, ERP`s and software enabling speedy transfer of data.

Speaking about the investment, Mr. Dinesh Agarwal, Founder & CEO of IndiaMART said “Real-time visibility of accounting data like revenue growth, profitability, cash flow management, etc. is a critical yet underserved problem faced by Indian Businesses. Livekeeping has been able to validate an innovative SaaS-based solution to this problem. Further, this investment helps complete the IndiaMART ecosystem in the accounting space. 

Adding to this, Mr. Ritesh Kothari, CEO of Livekeeping said “We are excited to partner with IndiaMART in our mission to automate accounting operations. Investment from IndiaMART will enable us to strengthen the product & technology, reach to the higher number of businesses and keep innovating on behalf of our customers. IndiaMART’s understanding of the SMEs and accounting space will play a big role in making this company a huge success.

Since its listing on BSE and NSE, IndiaMART has invested in companies such as Vyapar, Bizom, Shipway, Legistify, Superprocure, Aerchain, M1xchange, Easyecom, Fleetx, Industry Buying, BUSY, Realbooks, and Zimyo. All these investments are part of IndiaMART’s long-term objective of offering various software solutions which improve ease of doing business for Indian businesses and Enterprises. 

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Why IndiaMART spent over Rs 900 crore on acquiring startups | YourStory

Noida-based B2B marketplace IndiaMART has invested in over a dozen startups since it went public. Here’s a deep dive at what the company looks for in a startup.

In February 2021, when IndiaMART InterMESH Ltd, an online business-to-business (B2B) marketplace, raised about Rs 1,070 crore from qualified institutional buyers, it had a clear agenda — expansion. 

However, inorganic expansion isn’t easy for IndiaMart, which facilitates buy-sell transactions spanning over 97,000 different categories. After all, it needed to look for businesses with a matching synergy that would benefit its network of over 143 million buyers and 7 million+ store fronts

Between February and November 2021, “We met about over 200-300 companies, explored various sectors,” Dinesh Agarwal, Founder and Chief Executive Officer of IndiaMART, tells YourStory. 

While the Noida-based company had made a few acquisitions earlier, the spree really began last year. Since April 2021, it has spent over Rs 905 crore across 13 deals

In fact, in the last five months — since October 2021 — it has bought stakes in nine tech startups including Zimyo, Realbooks, IMPL, Fleetx Technologies, Busy Infotech, Simply Vyapar, Legistify, EasyEcom, and M1Xchange

These investments — across accounting, logistics, etc — are expected to further the business development of IndiaMART’s customers, says Dinesh. 

The aim was simple — aid the digital adoption by businesses across India.

Across India Inc, the COVID-19 pandemic has been a catalyst of sorts when it comes to digital adoption and adaption, and small and medium enterprises have learnt the value of digital in a harsher way, says an investment banker, who has been working closely with startups that have listing plans in the near future, on the condition of anonymity.

And IndiaMART hopes to capitalise on this rising need. “There are three segments—micro and small, medium, and large. For each of them, there is a different offering that is needed. One size doesn’t fit all,” says Dinesh. 

IndiaMART acquisition updated

For example, in accounting, micro and small businesses can benefit from Vyapaar’s offerings, medium-sized ones can avail Busy’s software, while large businesses that need a multi-location facility can use Realbooks.  Then, HR and payroll management is taken care of by Ziymo, invoicing by M1Xchange. 

While most of these are minority investments, IndiaMART still has a lot to gain– and to offer. 

What’s in it for the startups?

Punit Gupta, Founder, and CEO of e-commerce solutions provider EasyEcom, told YourStory in a previous interaction in January 2022, “More than the capital, it is the partnership we are excited about, where we are able to collaborate with them (IndiaMART) to propel our journey.

“The scale is what fascinates me about IndiaMart,” he added. 

IndiaMART invested Rs 13.35 crore in EasyEcom for a 26.01 percent stake in December 2021. The Bengaluru-based startup offers omnichannel solutions for e-commerce businesses and sellers, with 150 ready-to-use integrations for stock management, warehousing, and order management. 

Entrepreneurs like Punit are excited about the potential information and network exchange with a company that has been in the sector since 1996. 

Punit added, “The partnership is very valuable for us because along with the money, they also bring in the know-how to work with small and medium enterprises in India, which nobody knows better than IndiaMART.”

An added bonus is the entrepreneurial experience and expertise brought to the table by Dinesh, who is mentoring these startups on product, distribution strategy, and building teams.

“The first couple of quarters go into understanding their customer persona and pain points better,” he adds. 

He will also guide them in monthly or quarterly review meetings, with his experience and understanding of why some products fail or succeed, what sales strategies worked in the past and what didn’t. 

IndiaMART also has built a strong subscription business, with 95 percent of its revenue coming from subscriptions—and can help sell subscriptions in the B2B segment.

How would IndiaMART gain?

A large part of the investment it raised in February 2021 has already been used. With the remaining amount, “We will see if we can make one or two more investments,” Dinesh says.

For the company, these are both financial and strategic investments. 

“First and foremost, every minority investment must have a good return financially over 5-10 years,” he adds. 

There is a clear vision in IndiaMART’s acquisitions. While return on investments may fructify in the long term, the immediate advantage is the stickiness it can offer its customer base that is the target audience of the startups it is investing in, the unnamed i-banker opines. 

IndiaMART has a large market opportunity, with more than 63 million registered medium and small size enterprises(MSMEs) and more than 12 million GST registered businesses in the country, as of August 2021. 

These investments, in turn, fall in line with IndiaMART’s long-term vision of providing a holistic ecosystem for all business needs. This involves a collaborative and integrated ecosystem for finance and accounting, payroll, attendance and HR management modules, logistic companies among others. 

“We tried to see if there are possible synergies that can emerge over the next 3-5 years, so that we can go deeper and also get higher sales and higher market penetration for IndiaMART in the digital accounting ecosystem,” Dinesh adds. 

The broader vision involves offering a bundled service for sellers — inventory management, order management, accounting, invoicing, receivables management, tax compliance, distribution management as basic functions on the company’s store. 

“At the same time, we want to empower them to have a better store at IndiaMART with better SKUs (stock keeping unit),” says Dinesh. 

The larger startup ecosystem is constantly innovating and the startups in IndiaMART’s portfolio could be its armoury of sorts to future-proof its business, as well as define stronger moat, the i-banker adds. 

COVID-19

Some of these acquisitions such as Shipway, EasyEcom, Fleetx are due to the emerging opportunities in the growing direct-to-consumer (D2C) and e-commerce segments. For context, according to IBEF, India’s e-commerce market is expected to grow to $111.40 billion by 2025, up from $46.2 billion in 2020.

IndiaMART’s quarterly net profit margin since June 2018

Source: ProwessIQ, YourStory Research • Consolidated financials, values are percentage.

When the pandemic hit in March 2020, “our entire focus was on cost optimization and home migration” Dinesh recalls. 

And it has worked. 

In FY 2021, IndiaMART reported revenue from operations of Rs 669.6 crore, growing 5 percent on a yearly basis.

IndiaMART’s quarterly revenue and profits since June 2018

Source: ProwessIQ, YourStory Research • Consolidated financials, in Rs crore.

It was in December 2020- January 2021 that the company started looking at inorganic growth opportunities. 

By this time, MSMEs were already adopting technology use, forced by months of lockdown earlier, and online GST payments mandates. Already, their next generation of owners is technology savvy. 

The company’s management is keen on using Software-as-a-Service (SaaS) solutions, which could benefit these small businesses and help them grow. It is aiming to improve engagement through fintech, SaaS, and vertical commerce. 

Added to that, Dinesh says, “MSMEs trust IndiaMART for the products that we have been facilitating for them over the years. So, when we go to them with another offering, they are more likely to trust IndiaMART, with the product and distribution system.” 

Key categories

Accounting

Of all its investments, accounting software company Busy Infotech was a significant one, with IndiaMART paying about Rs 500 crore for fully acquiring it. 

The New-Delhi-based company, with a presence across India, incorporated in 1997, is profitable.  In FY21, Busy Infotech reported revenue of Rs 42.4 crore and a profit after tax of Rs 11 crore — an enviable net profit margin of nearly 26 percent.

“Lakhs of Indian businesses rely on Busy Accounting Software for their accounting needs, and the value proposition fits in well with IndiaMART’s long term objective of making doing business easy for Indian businesses,” Dinesh said at the time of the acquisition.

Earlier this month, IndiaMART bought a minority stake in cloud-based accounting software Realbooks, which enables businesses to create customized invoices, attach files to vouchers, and manage their inventory.

IndiaMART extended its holding in mobile-based self-accounting software Simply Vyapaar in January 2022 to 27 percent, putting in another Rs 61.55 crore in Series B round, added to the Rs 31.2 crore it had invested in September 2019, for a 26 percent stake. 

Logistics and transportation

With Shipway, SuperProcure, and Fleetx, IndiaMART is offering SaaS solutions for logistics, an industry that can benefit more from the Internet of Things-enabled applications and data. 

“Supply Chain Visibility (SCV) is a critical yet underserved problem faced by Indian businesses and fleet owners,” Dinesh says. 

It invested Rs 91.42 crore for a 16.53 percent stake in Fleetx, which provides freight and fleet management software for fleet operators and businesses to digitize their logistics operations. It provides them visibility of vehicles and related IoT-based analytics services.

IndiaMART invested another Rs 18.2 crore in Shipway for a 26 percent stake, and Rs 10.4 crore in SuperPorcure for a 25 percent stake. 

SuperProcure is a SaaS-based platform, which helps digitize the entire freight sourcing by finding the best possible rates through a transparent bidding and auction structure, while Shipway develops SaaS-based solutions that allow small businesses to automate their shipping operations.

B2B commerce

With the B2B commerce space heating up with unicorns like Udaan, Moglix among others, IndiaMART is also strengthening its e-commerce play. 

It invested Rs 104.2 crore in Japanese e-commerce player IB MonotaRO (IMPL) and Rs 13.35 crore in EasyEcom. 

While it may have been tempting for IndiaMART to back in-house solutions to facilitate the digital migration of MSMEs during the pandemic, it instead has chosen to back startups that are already solving distinct problems for the same market — and have skin in the game.

And that’s given rise to IndiaMART, the strategic investor, beyond its growth as a standalone business.

Share price

However, even with more than Rs 900 crore in investments in the last year, IndiaMART’s share price has been falling. Its share price has plummeted by 48 percent — almost half of Rs 8,608 to Rs 4,471 on March 16. 

Market capitalisation of IndiaMART InterMESH since listing

Source: ProwessIQ, YourStory Research

However, some analysts are hopeful. Axis Securities have set a target price of Rs 6,800/share

In a report dated March 14, 2022, analysts at Axis Securities said with “a resilient business structure from a long-term perspective, supported by multiple verticals and higher penetrations in the rural areas of the country,” IndiaMART is well-positioned to capture the immense growth opportunity.

“Its robust technology backup supporting business platform, strong and consistent traffic improvement and margin tailwinds driven by cost efficiencies, lower input costs, and higher realisation, and healthy cash flow generation and acquisition strategy for inorganic growth,” is helping drive growth, the report said. 

IndiaMART InterMESH vs. S&P BSE 500

Source: ProwessIQ, YourStory Research • Daily adjusted closing price and daily closing value of the indices are rebased to 1000

Clearly, while IndiaMART has consistently outperformed the broader S&P BSE 500, its market capitalization does not capture the upside of its acquisition spree.

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‘Pehli Taareekh’ may lose significance with weekly payoffs knocking India Inc’s door | ET HR World

Companies like IndiaMART and MemeChat have already taken the baton, as according to them this would perhaps increase employee satisfaction and their overall financial wellbeing.

In the times when consumerism is affected heavily by the digital platforms, social influencers, and increasing brand consciousness leading to more instant buying approaches, a few companies felt it is unfair for employees to wait for a month for their work’s payoff. “Meetha Hai Khaana, Aaj Pehli Taareekh Hai” days are gone by, as now the payday excitement has increased fourfold with weekly salary reimbursements.

Companies like IndiaMART and MemeChat have already taken the baton, as according to them this would perhaps increase employee satisfaction and their overall financial wellbeing. “We realised that the consistent flow of money is essential to the wellbeing, financial wellness, and employee motivation of any individual. Paying employees on a weekly basis makes it easier for them to meet their real-time fiscal obligations,” says Dinesh Gulati, COO, IndiaMART.

Not to mention how, according to Gulati, the excitement of the payday increases fourfold with the weekly payout, making employees more satisfied, happier, and, consequently, more motivated towards their purpose in the organisation. Hence, at IndiaMART, weekly salary pay disbursement was recently started with an intent to build a flexible and supportive work culture that guarantees instant gratification for an employee’s day-to-day contribution.

The company, however, is yet to study the impact and are in a very nascent stage to comment since it has been just a month when they started with the weekly salary model.

A small percentage of MemeChat’s staff has also opted for this weekly remuneration as the company announced about it a few days ago. “Being millennials leading a similar workforce, we do understand their sentiment on how a weekly payout aids in better saving policies, organising financial priorities and most importantly securing their financial needs,” says Taaran Chanana, Co-Founder and MD, MemeChat.

The fact that the frequency of receiving salary credit notifications will now be four times, according to Chanana, will automatically boost their motivation to work. In addition to weekly payouts, the company has also been providing additional non-financial benefits that, in Chanana’s words, motivate employees to excel. 

However, not many companies have adopted the weekly salary payout model and still believe in the importance of one payday. With IndiaMART and MemeChat the only ones blazing the trail as of now, it perhaps becomes imperative to understand if this model is here to sustain. Is the trend here to stay?

Can we even call it a trend?

When IndiaMart announced this policy, the company witnessed huge excitement across industries through social media and other digital mediums. There were YouTube videos by individuals discussing weekly salary payout and various polls happening around the topic. In many independent agency polls, we could see a majority of the people opting for the weekly payout option. The buzz around the same was all organic and IndiaMart was appreciated by many for this decision.

However, IndiaMart believes that it is yet to become a trend in India as the company is the first organisation that has implemented this at all hierarchy levels across all departments. “Although, we have already seen many organisations promoting Flexi work culture through various policies such as hybrid working model, and flexitime, weekly salary payout is another huge step towards improving the employee experience and keeping their morale high,” Gulati mentions.

But seeing its benefits, Gulati thinks that more and more organisations will adopt the frequent payout of salary in the future.

Although weekly payments are not yet popular in India, even Chanana believes that it is a very convenient and beneficial option for employees who work on an hourly basis, contracts, temporary workers, or interns. “It is all about how open and mindful companies are about their employees. Organizations should listen and cater to the needs of their employees to keep them happy and boost their performances. This trend will give morale and motivational boost to the employees,” Chanana says. 

This is because the most important factor for both IndiaMart and MemeChat is building an organizational culture that meets the needs of the evolving millennials, Gen Z and Gen Y. And according to the companies, the weekly payoff is a likable trend that would flourish even more in the coming days.

But are all the employees on the same page?

Well, both the companies have different approaches!

Mind the difference of opinions!

IndiaMart started taking steps in this direction a few years back when the company migrated to weekly incentive payouts for many roles across the organization. Further, the company initiated the weekly payout of salary as they believed that consistent cash flow will provide more financial freedom, greater motivation to achieve, and a better work-life balance for all. 

Gulati says, “We do understand that any big change has that initial resistance, but as an organization maintaining multiple regimes for the same policy is quite cumbersome.” Hence, the Weekly Salary Payout policy at IndiaMart applies to all levels across the hierarchy without any exemption.

But this wasn’t all of a sudden! Gulati says that the company planned well ahead for this roll-out and took some steps to help its employees easily navigate through this change. For instance, the rollout was made from 1st February this year post everyone received their January’s salary on the last working day of January. This gave a head start to the employees for the planning of weekly finances in a more conducive way before they started receiving their weekly salaries.

Various town halls were conducted along with business leaders that helped in sharing the information. “We encouraged employees to park their queries, concerns via ticketing mechanism or emails and get a resolution within hours,” says Gulati. A well-articulated policy along with all FAQs was shared with the employees to understand the change as well.

The company also initiated a ticketing mechanism that helped its employees get resolutions within hours and the employees could reach out to their respective HR Partners in case any further clarification was required. IndiaMart also gave the employees visibility of the weekly salary break up with all components that explained the earnings and deductions that lead to the payout amount enabling them to plan their finances in advance without any hindrance.

Since these weekly payouts ultimately act as an advance payment of their monthly salary, Gulati says, “We believe that employees will benefit from this payout by managing their expenses throughout the month.”

However, at MemeChat, flexibility triumphed!

Chanana says, “The salary structure is flexible as we do not want to disturb the mental health of our employees by forcing them to pick weekly payouts. Each employee has been given the option to choose the payout option as per their requirements. We, as a company, support and respect their decision.”

However, there are always employees coming from diverse backgrounds and age brackets which will lead to differences in opinions among them. This will result in a higher chance of imbalance in the ratio of employees agreeing and adopting such a system. All these differences might put immense pressure and responsibility on the company while deciding weekly payouts.

Avoid one size fits all approach!

Experts say that to overcome such challenges, companies need to plan everything in advance before rolling out the policy, considering their industry, work culture and employees’ sentiment. They should make a list of questions and common doubts that may arise after the policy is rolled out so that they are well prepared to serve and resolve employees’ queries at the earliest. Instead of monthly working which was in the case of monthly payout, weekly working needs to be done by the payroll department and hence payroll department should also be equipped for the same.

Gulati, however, believes one solution does not fit all problems. Hence, companies need to assess and adapt this policy according to their organization and its nuances.

Both Gulati and Chanana feel that this policy should be a game-changer in India for all, whether it is the work culture of Indian companies, the way the HR department works, or the way the salary is processed. With the weekly payout policy, the scope of savings is also increased since people tend to spend more money at a specific period of the month. The rest of the salary coming in the following weeks can hence be saved. It is also, according to the leaders, a very convenient and beneficial option for employees who work on an hourly basis, contracts, temporary workers, or interns. More employees who work on an hourly basis can be hired which will eventually benefit the organization financially.

ET HRWorld

IndiaMART InterMESH: Room for growth as more players shift online

Given the growth path of IndiaMart, investors with a longer-term view can accumulate the stock at lower levels

IndiaMart Intermesh Ltd (IndiaMart; CMP: Rs 4,403; Market capitalisation: Rs 13,457 crore) has corrected by more than 50 percent from its 52-week high in the month of October 2021. In March 2021, IndiaMart had raised Rs 1,070 crore through the QIP route at Rs 8,615 per share. The correction in stock price can be partly due to the higher valuation and the investment in various fintech- and SaaS (software as a service)-based companies. 

Read More: Money Control

Fleetx announces ESOP buyback worth Rs 3.9 Crore

The ESOP buyback has been rolled out to 45 eligible current and ex-employees, as part of the closure of Fleetx’s Series B funding led by IndiaMart, with existing investors India Quotient and BEENEXT also participating, according to a statement.

Fleetx.io, an intelligent freight visibility and fleet management platform, has announced that it has facilitated ESOPs for a significant number of its employees as part of the recent fund raise. 

The liquidity transaction for the same has totalled approximately Rs 3.9 crore.

The ESOP buyback has been rolled out to 45 eligible current and ex-employees, as part of the closure of Fleetx’s Series B funding led by IndiaMart, with existing investors India Quotient and BEENEXT also participating, according to a statement. 

Vineet Sharma, Co-Founder and CEO, Fleetx.io, said, “Fleetx’s growth is a reflection of our people and their contribution; it wouldn’t have been possible without our people to reach where we are today. ESOPs liquidity is our way to thank them for their continuous effort and the belief they have in us. We are a great believer of ESOPs and continue to create a culture of responsibility with rewards along with significant financial upside which can’t be achieved with just salary.”

“We are looking to double down on our product and technology and scale our GTM capabilities. While we continue to focus and scale in the Indian market, we are evaluating some of the geographies outside India as well. We believe that our product can compete globally even today, and it’s just about cracking the GTM with the right strategy and great people,” added Sharma.

Founded in 2017 by IIT, NIT and Purdue University graduates, Vineet Sharma and his co-founders Abhay Jeet Gupta, Udbhav Rai, Parveen Kataria and Vishal Misra, Fleetx offers a suite of IoT and software-based products to help industries digitise their logistics operations and helps them improve safety, efficiency and sustainability of their vehicles and operations.

ET HR World

Building India’s largest online marketplace: IndiaMART CEO Dinesh Agarwal shares 25-year journey | Prime Ventures | YourStory

Dinesh Agarwal, Founder and CEO of IndiaMART, recently appeared in a Prime Venture Podcast to talk about his company’s journey from inception to IPO.

In 1995, when the then Prime Minister PV Narashima Rao declared that the internet had finally arrived in India, Dinesh Agarwal quit his job in HCL America and returned to India. He admitted that he had no idea back then what he wanted to do in India with the internet. However, while searching for potential Indian exporters for whom he could develop websites, Dinesh stumbled upon the idea of building an online B2B marketplace. 

Today, IndiaMART’s market capitalisation is over Rs 14,800 crore. In an episode of the Prime Venture Podcast, the IndiaMart CEO talked about how his journey has been strategic and enlightening.

IndiaMART’s defining moments

Dinesh admitted that IndiaMART’s initial days were not exactly comfortable. “In those days, the Indian user base was very minuscule. [There were] hardly 5,000-10,000 users in India,” he recollects. However, the first turning point came when Dinesh and his team decided to follow a B2C-like approach in the Indian B2B space. 

“For five years, starting from 1997 to 2001, we did a free listing of every export business. When we received inquiries for those businesses every day, we printed them in the evening, faxed them overnight, and next day, sent those inquiries by post,” says Dinesh. This online-offline hybrid model made IndiaMART a popular name among Indian export businesses.

Following this, the dot-com bust enabled IndiaMART to acquire a deep pool of talent. Dinesh shared that while most dot-com companies were folding around them, IndiaMART was profitable, which enabled them to attract both talent and customers.

Dinesh Agarwal, Founder and CEO of IndiaMART

From listing businesses to becoming a marketplace

Dinesh mentioned that for almost 10 years, IndiaMART expanded slowly. Till 2007, the site was only listing export businesses and offering website development along with search engine optimisation. “But during 2007-08, a few things started changing. One, the domestic internet adoption took off. Second, mobile phones became very powerful. Third, [there] was a lot of domestic inquiry. And fourth, I could see that now exports are not going to go anywhere over the next couple of years.”, he adds.

He turned his attention to India’s B2B market because he saw an opportunity as both the buyer and supplier existed in the same place. IndiaMART’s founding team finally decided to raise funds to expand exponentially. “And in 2010, we did ‘blitzscaling’. In 52 weeks, we opened 52 offices,” he recollects.

Bundling and unbundling

Dinesh switched gears to talk about what he thought about bundling and unbundling in the Indian B2B space. “In the US and China, there may be 20 large verticals which are billion-dollar-plus. [But] in India, there are hardly four [such] verticals,” explains Dinesh. He added that India is still 10 years away from having strong verticals like in the West and India’s path to that destination will also be very different.

Advice for aspiring entrepreneurs

He urged all aspiring entrepreneurs to think long-term, keep learning, and don’t quit. “Keep learning the tricks of the game. There is no point in quitting. Quitting is not advisable. You just keep participating, keep participating, and don’t die. Those are the only two things. Don’t quit and don’t die.”, said Dinesh. 

To know more listen to the podcast here

Timestamps:

01:00 – Founding story of IndiaMART

09:00 – IndiaMART’s journey into the domestic B2B space

20:00 – Bundling and unbundling; verticalisation; superapps

25:00 – Opportunities in Indian B2B space

29:10 – Keep learning and don’t go home

YourStory

IndiaMART leads INR 170.1 Million investment in SMB focused HR SAAS Platform Zimyo 

IndiaMART, the largest B2B marketplace of India has made an investment of approximately INR 170.1 Million in Zimyo Consulting Private Limited.

Zimyo Consulting under the brand name ‘Zimyo’, offers SaaS-based human resource management software for businesses. It allows users to carry out critical HR processes including recruitment and onboarding, payroll management, performance management, and time & attendance management. It also includes employee benefits modules which offers salary advance, personal loan and health & term insurance to employees.

Speaking about the investment, Mr. Dinesh Agarwal, Founder, and CEO of IndiaMART said “COVID-19 has accelerated the adoption of SaaS-based HR Management solutions by new age as well as traditional businesses. Apart from their core Payroll and attendance management modules, we also feel that there is immense potential in Zimyo’s vision of providing comprehensive HR management modules and other benefits to employees as well as employers. This investment is another step towards IndiaMART’s long term vision of providing a holistic ecosystem for all business needs, and we are excited to partner with the Zimyo team for their next phase of growth” 

Adding to this, “India is home to one of the world’s youngest populations, which by 2050 is expected to account for over 18% of the global working population. Millions of employees of the small and mid-size businesses,  which form over 45% of this working population are forced to choose between paper or HR solutions that aren’t designed for them. Zimyo wishes to bridge the gap. We want to be the go-to HR Platform that both the SMB and the employee chooses for meeting its HR and benefits’ needs”, said Mr. Kumar Mayank, CEO of Zimyo.

Since its listing on BSE and NSE, IndiaMART has invested in companies such as Vyapar, Bizom, Shipway, Legistify, Superprocure, Aerchain, M1xchange, Easyecom, Fleetx, Industry Buying, Realbooks, and BUSY. All these investments are part of IndiaMART’s long-term objective of offering various software solutions which improve ease of doing business for Indian businesses and Enterprises. 

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IndiaMART acquires stake in Realbooks

IndiaMART, the largest B2B marketplace of India, via its wholly-owned subsidiary Tradezeal Online Private Limited, has announced an investment of approximately Rs 13.75 Crores in Adansa Solutions Private Limited. As part of the transaction, IndiaMART has agreed to acquire shares via a mix of primary and secondary share purchases, and its final shareholding post the round shall stand at 26.01%

Adansa Solutions under the brand name ‘Realbooks’, offers a cloud-based accounting software product for businesses. Furthermore, it enables businesses to create customized invoices, attach files to vouchers, and manage their inventory. It also allows the managing of different business units from a single dashboard.

Speaking about the investment, Mr. Dinesh Agarwal, CEO of IndiaMART said “We at IndiaMART firmly believe that Indian businesses are diverse and have varied accounting and billing needs. Unlike existing desktop-based software solutions which were designed for traditional businesses, the team at Realbooks has consciously designed a cloud-first product that makes it appealing for new-age businesses. We believe that this investment complements other initiatives we are taking within this space, and are excited to partner with them for their next phase of growth”.  

Adding to this, “We are very happy to welcome IndiaMART as an investor and our strategic partner. It’s an exciting time for businesses in India and technology like UPI and GST is bringing new opportunities and challenges. We are solving two problems for Indian businesses. We are organising financial data for companies working pan India having offices in multiple cities and states such as logistics, auto dealerships, e-commerce. We have created a platform for CAs firms to provide accounting services to their clients and manage their compliances with integrated GST solutions. RealBooks along with IndiaMART is committed to being at the forefront of this revolution, creating a collaborative and integrated ecosystem for finance and accounting”, said Mr. Anurag Mohta, CEO of Realbooks.

Since its listing on BSE and NSE, IndiaMART has invested in companies such as Vyapar, Bizom, Shipway, Legistify, Superprocure, Aerchain, M1xchange, Easyecom, Fleetx, Industry Buying, and BUSY. All these investments are part of IndiaMART’s long-term objective of offering various software solutions which improve ease of doing business for Indian businesses and Enterprises. 

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The Exponential Rise Of Indian Startup Ecosystem

Dinesh Agarwal, Founder and CEO, IndiaMart, believes that digitisation and significant capital investments in the last two decades have contributed towards the exponential rise of the Indian startup ecosystem

The Economic Survey 2021-22, released last month, showed that India had become the world’s third largest-startup ecosystem after the US and China. It notes that the government in that past year recognised over 14,000 new startups compared to 733 in 2016-17. Moreover, India saw a record 44 startups turning unicorns in 2021 and just two months into the new year, India has already registered ten unicorns. What explains this exponential growth of India’s startup ecosystem?

Dinesh Agarwal, Founder and CEO, India Mart, says that digitisation and significant capital investments in the last two decades have resulted in this dramatic growth of the Indian startup ecosystem.

“Twenty years ago, the whole venture capital or private equity capital or risk capital which doesn’t come with a debt mindset was not available. The whole concept of valuation and exits was probably not there. So, people were building the slow growth model of cash flow-based business approval. Secondly, the number of internet users jumped significantly due to the IT penetration, and in accordance with that, the number of mobile users went up. This gave a lot of opportunities to write software and start businesses. These two, I believe, have propelled the whole startup ecosystem in India to a great extent,” says Aggarwal.

Watch the complete video here to listen to Aggarwal elaborating on the digitisation aspect, what it means to be an entrepreneur, why people aspire to become an entrepreneur and whether founders should have a ‘Plan B?’

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