IndiaMART InterMESH Ltd – Evolving Over Time | investyadnya


IndiaMART is India’s largest and the world’s second largest online B2B marketplace. It is a platform that connects buyers and sellers across time-zones and borders through business solutions. However, their journey of reaching this pinnacle is no less of a roller coaster ride with copious ups and downs.

In today’s blog we look at how IndiaMART InterMESH reinvented their business model from time to time, by persistently adapting to the changing environment and understanding the needs of Indian SME businesses.

Let’s begin with the tale of Mr. Dinesh Agarwal, the Founder & CEO of IndiaMART InterMESH Ltd.

Mr. Dinesh Agarwal was born in a traditional business family in Uttar Pradesh’s Napara District, in close proximity to the Nepal border. He attended a Hindi medium government school and went on to graduate from HBTI, Kanpur with a B.Tech. in Computer Science. After working with several prominent companies, in 1992 he landed a job with HCL and relocated to United States.

This was when Mr. Dinesh Agarwal had his eureka moment. He says in an interview –  

“I had been using basic internet like email since long but a major turning point in my career was when I saw a webpage opened on a colleague’s computer while I was working in US. That was the first time that I felt that internet is going to be a driving force. I felt as if the whole world is converging on that webpage. It was such a euphoric moment for me to witness that one can access any information with just a click. I call this moment as a turning point in my career because it was then that I realised that I wanted to work in the field of internet.”

To quote Paulo Coelho – “Life was always a matter of waiting for the right moment to act.”

Dinesh’s right moment to act came on 15th August, 1995 when Prime Minister PV Narasimha Rao announced that BSNL would provide internet connectivity in India. Having witnessed the birth and evolution of internet in America, Dinesh’s entrepreneurship bug revived. He left HCL and came back to India to start an internet company –

Dinesh believed that Indian Small and Medium Enterprises (SMEs) would benefit the most from the forthcoming internet boom. However, in 1996, India had a dearth of computers and lacked imperative internet infrastructure. Thus, instead of creating websites for individual businesses, IndiaMART developed one website for connecting Indian suppliers with the international buyers in a simple, cost-effective manner.

Inorder to establish a sustainable business model, IndiaMART created an online version of Yellow Pages for India – an online directory of Indian exporters. Their first tagline was: ‘The Global Gateway To Indian Marketplace’.

As Mr. Dinesh Agarwal states in an interview with Forbes India –

“Understanding that exports were very important for the Indian economy, we realised that there for a price opacity and limited information about Indian products for the American importer. We started with that opportunity. Back then, we got online enquiries from the US and every night, we printed them, faxed them overnight and then sent them by post the next day. This went on for five years. The internet really only took off when the dot com boom happened in 1999-2000. The focus shifted to computers, e-mail, content-building, more suppliers, and more exporters online.”

The dotcom bubble burst and 9/11 attacks put a damper on IndiaMART’s aggressive growth spurt. Their revenues almost halved in a short stretch of time, employee salaries were delayed and things took a turn for the worse. Nevertheless, Mr. Dinesh Agarwal was tenacious and refused to throw in the towel. He navigated the company through these choppy waters and soon enough business was back on track.

In 2007-09, the Global Financial Crisis led to a recession in the US, and Indian exports flattened out. IndiaMART once again found itself behind the eight balls. Here is when Dinesh Agarwal made up his mind to pivot towards the India-focused B2B market and raised $10 million in Series-A funding round from Intel Capital. With the passage of time, they introduced various value-added features to their marketplace platform like – catalog creation and premium number service.

With a new model and fresh capital, IndiaMART was firing on all cylinders. They spread their wings and opened 52 offices in 52 weeks. As a result, their sales grew 10 times in a year.

In 2012, IndiaMART experienced yet another setback as our economy slowed down. They reported a loss for the first time since inception. They truly hit rock bottom. They lost their stakeholder’s trust and Dinesh Agarwal admits he was scared to even leave home.

This adversity became their stepping stone to success. Dinesh Agarwal and his team went back to the drawing board and revamped their entire business model. They made some big changes, scaled back and stopped hiring. They switched from their earlier lead generation model to a Buy-Lead model, thereby finding a new product-market fit.

IndiaMART launched their mobile application and streamlined their website, thereby leveraging technology for better product and price discovery. They also started providing digital and telephonic assistance to convert buyer enquiries into sales.

Promptly, IndiaMART metamorphosed from a traditional classified platform to a completely buyer-centric transaction completion platform. In the process, their core principles and values have stood steady as a rock. Even today, IndiaMART do not charge a penny in any commission or transaction fee from their buyers. They operate a subscription-based model for suppliers.  

With the burgeoning B2B e-commerce in the country, IndiaMART launched in 2014 – the online shopping store for business and industrial goods.

Over the course of time, scaling up Tolexo was proving to be an uphill task and profitability was elusive. Maybe they bit on more than they could chew. Hence, Dinesh Agarwal called the shots and merged the IndiaMART platform with Tolexo. Surprisingly, it worked like a charm and they’ve stuck to it since then. This is the reason why IndiaMART doesn’t look like a boring classifieds website; it’s like Amazon for B2B products.

An advocate for simplifying the internet experience, Mr. Dinesh Agarwal expresses in an interview –

“While we are a technology company, users should see us as a functional company—not a technology company. My mantra is—let the user get his job done without being exposed to the jargons of technology or the technology hurdles.”

In their pursuit of making product-matchmaking easier for businesses, they’ve successfully on boarded umpteen SMEs from rural India. As a matter of, around 33% of the traffic on their platform stems from tier 3 and 4 cities, smaller tehsils, and villages of India.

As of December 2020, IndiaMART has more than 119 million buyers, 6.4 million suppliers, and a whopping 71 million+ products & services. With 60% market share of the online B2B Classified space in India, their channel focuses on providing a platform to SMEs, Large Enterprises as well as individuals.

The management team at IndiaMART has thoroughly embraced the methodology of Learn-Unlearn-Relearn. They’ve had the courage to bite the bullet, by reinventing their business model from time to time and persistently adapting to the fickle environment.

While perusing through several interviews of Mr. Dinesh Agarwal, we came across something that candidly struck a chord with us. We are sure it will inspire you as well –

“One of the things that I have learned is to ‘never give up and I keep telling my team that it’s better to try and fail than to sit and regret. I believe that everyone has a 100% chance of succeeding in life. Everyone I think is born with at least 20% of luck. But you will have multiple failures in life. So, if you try only once, the chance of success becomes zero. But if you try it five times, your luck at succeeding at it becomes 100%.”



Being in the business for 25 years takes a hell lot of hard work & determination. Little did the businesses get a clue of their own existence and journey. Therefore; its rightly said that business are meant for an infinite life period where you cannot predict what’s next.

Facing the business fluctuations; it’s tough to touch such a great position even though you are the leader in the segment.

The recent buzz is about the same. We have a 25 year celebration of the leading company; Indiamart that has established its name in a quite fulfilling manner.


The company is a major e-commerce company that gives B2C, B2B & sales service through its web sites & portals. It was incepted by Dinesh Agarwal & Brijesh Agarwal in the year 1996. The website is called that caters to the requirements of manufacturers & buyers.

The headquartered is in Noida. They had a total of Rs. 72.3 crore in the domain of 2019 fiscals which are currently 76% of the total traffic. The app has more than Rs. 1 crore downloads with a 4.7 app rating.

The company went public in the year 2019 and technically was the first business to business to enter the market. The issue was oversubscribed by 36 times. The revenue till December 2020 at Rs. 565 crore with an 11% year on year growth. The user base has also been doubled since the year 2018 and has reached the 100 million mark in the last year.

The funding details of the company up till now are:

2009Series A Rs. 50 crore
2016Series C
2018$ 88.24 million

The story started quite a lot years back; where the company managed to get its first 45 customers. A revenue of 6 lakh was achieved in the initial year.

But by the time 2000’s came into picture; the internet penetration started; the company took a boom. Expansion was the major focus and sky rocketing was the major motive.

Last year they had a revenue of Rs. 1crore 10 Lakh. From the 2008 financial crisis to 2020 covid ; it had witnessed all.

First Business To Business Marketplace to reach 100 million

66 million products
100k categories
6 million sellers listed

The founder showed his gratitude by a tweet stating that “Thank you our valued customers , team members and all stakeholders for making this journey a fulfilling one..”

Challenges definitely make life tough; but you cannot manage to excel unless you are ready to face the. Business has a simple mantra that comprises two basic objectives; one to survive  & other to be profitable.

Profits are the strategic advantage that you get while survival is a matter of concern because you cannot close the doors of competition.

Therefore; this 25 is very important as the 25 years of struggle that Indiamart chose to do was quite commendable. The journey ahead is going to be more fruitful & hopefully the next 25 would be more fascinating.

IndiaMART Turns 25: A Look Back At The B2B Marketplace’s Journey | Inc42


Exactly 25 years ago, when Brijesh Agrawal and Dinesh Agarwal started IndiaMART, a business-to-business marketplace linking buyers and suppliers, they wouldn’t have expected that it will become an INR 24,000 Cr behemoth and according to KPMG, India’s largest online B2B marketplace.

Founded by Brijesh Agrawal and Dinesh Chandra Agarwal in 1996 and incorporated in 1999, when the internet was still a luxury in India, IndiaMART got its first order from restaurant chain Nirula’s and founder Dinesh Agarwal didn’t shy away from showing his gratitude through his tweets to investors.

The company managed to rope in 45 customers in the first year of its inception and it ended its first fiscal with INR 6 Lakh in revenue at a time when ecommerce operations were nascent in India. By 1999, the internet ecosystem would experience an exponential boom in India with the dotcom bubble. The valuation of digital companies skyrocketed and IndiaMART expanded as well. It hit a milestone of achieving revenue of INR 1 Cr with INR 10 Lakh profit in the year.

By the time, the Indian ecommerce market grew with the likes of Flipkart and the entry of Amazon, IndiaMART had survived the 2008 financial crisis. It raised INR 50 Cr from global venture capital firm Intel Capital in 2009, and the following year it reported a revenue of INR 50 Cr.

By the time it got listed on the BSE in June 2019. the company had managed to create a niche in the B2B ecommerce market, despite the entry of UdaanMoglix and Infra.Market and other players in the same space. It managed to double its registered user base from 50 Mn in December 2018 and reached the 100 Mn user mark in the last quarter of FY 2020. Notably, the company has a strong presence in Tier 2 and Tier 3 markets as only 33 to 34% of its traffic come from the top eight metro cities. It also claimed that controls 60% of the total B2B ecommerce market. Given its reach, IndiaMART attracted adulation from various corners of the startup ecosystem on its silver jubilee.

He also said that the larger geographical reach and product assortment has helped the company record 10 Cr buyers on its platform. The IndiaMART CEO claimed this is the first B2B marketplace to reach this mark. With 66 Mn products listed in over 100K categories ranging from groceries to electronics, this allows the company to attract large numbers of buyers and sellers. Besides this, the platform also has close to 6 Mn sellers listed on the platform.

“Because of this large base, our penetration in Tier 2 and Tier 3 markets is strong. At IndiaMART, only 33 to 34% of our traffic comes from the top 8 metro cities. Rest of the traffic comes from Tier II and Tier III towns and especially from small villages and tehsils and districts across India,” Dinesh told Inc42 in February last year.

As per its last financial statement, IndiaMART recorded total revenue of INR 565 Cr for the first nine months, from April to December-end, of the current fiscal year FY2021, according to the company’s filings with the Bombay Stock Exchange. With an average quarterly profit of INR 70 Cr, IndiaMART could comfortably cross the INR 300 Cr mark in FY21.

Indiamart to acquire 11% stake in Legistify | Business Standard

Business Standard

Indiamart Intermesh, through its wholly owned subsidiary, Tradezeal Online, has agreed to acquire 11.01% stake of Legistify Services through SSHA signed between the parties.

Legistify Services, via its flagship product Legistrak, offers a SaaS (software as a service)-based ERP tool which allows enterprises to manage their legal workflows. Some of the key features of the Legistrak tool are litigation tracking, notices management, legal vendor management, etc.

Indiamart said that this investment is in line with its long-term objective of offering various SaaS based solutions for businesses. Indiamart Intermesh, through its wholly owned subsidiary, Tradezeal Online intends to invest a total a total cash consideration of Rs 1.30 crore. It will acquire 100 equity shares and 1,146 Compulsorily Convertible Preference Shares (CCPS) (as part of the primary fundraise by the entity) and 1,580 CCPS (from existing investors via a secondary purchase).

The final aggregate shareholding of the company, post this investment, in the said entity would be 11.01% on a fully converted and diluted basis. The announcement was made during market hours today, 30 March 2021.

Shares of Indiamart Intermesh gained 0.27% to Rs 7,803 on BSE.

IndiaMART is India’s largest online B2B marketplace for business products and services. The company makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.

The company reported 29.35% rise in consolidated net profit to Rs 80.20 crore on 9.2% rise in total income to Rs 198.20 crore in Q3 December 2020 over Q3 December 2019.

Business Standard |


The Podium

In today’s episode of Founder Thesis, host Akshay Datt is in conversation with Dinesh Agarwal, the founder, and CEO of IndiaMART. IndiaMART is India’s largest B2B marketplace for small & medium enterprises (SMEs), large enterprises, and individuals.

Before starting IndiaMART, Dinesh worked at HCL technologies in Silicon Valley as a software engineer and gained early exposure to the internet and the power of technology. 

In this candid conversation, he talks about overcoming loneliness and other challenges of living in a foreign country. However, the two things close to his heart that kept him going were India and computers. The urge to come back to India and start his business kept growing stronger with each passing day. He was so fascinated by the Internet that he made his mind leverage its potential and create something massive out of it. Rest, as they say, is history. 

Well, what started in the early internet era as an idea, is now a platform that has more than 10 crores registered users on it. And of course, it continues to grow even though it’s been almost 25 years since it started. 

He recalls IndiaMART’s early years when his wife would answer queries from buyers outside India and he would use a simple hack of going to trade fares to build his dataset and generate leads.

Tune in to this exclusive chat with Dinesh Agarwal and listen to him talk about everything Internet and ECommerce.

IndiaMART eyeing acquisitions, planning strategic investments | HBL

Hindu Business Line

Looks to widen the scope of its “ecosystem” and go “beyond buyer-seller discovery and price matches”

Coming on the back of successful fundraising (QIP) of over ₹ 1,000 crore, B2B e-commerce company, IndiaMART, is eyeing acquisitions and planning strategic investments as it looks to widen the scope of its “ecosystem” and go “beyond buyer-seller discovery and price matches”.

The company plans to strengthen additional services including “payment gateways” – like pay with IndiaMART, receivable management, GST invoicing, accounting services, and conversational commerce across subscribers, that primarily include the small and medium enterprises.

Over the last one year, they have analysed 100 plus different companies as a part of their expansion plan.

“Funds raised will be used towards strengthening our ecosystem by adding more services, like say a payment platform or receivables, order & inventory management, accounting software, and so on. We are open to picking up a minority stake or strategic investments or outright acquisitions in these companies,” Dinesh Agarwal, MD, and CEO, IndiaMART InterMESH Ltd, told BusinessLine.

Agarwal did not rule out the chances of acquisition of competing B2B e-commerce companies if they “help solve problems in a particular vertical that IndiaMART deals with”.

“With increasing competition, there will be verticals that newer B2B e-commerce companies will focus on, thus making them potential acquisition targets for us,” he added.

Increased Buyer Queries

IndiaMART, listed on the bourses, reported consolidated revenue from operations ₹ 174 crore for the quarter ending December 31, 2020, a 5 per cent year-on-year growth over the last year. The total number of paying subscription suppliers stands at approximately 1.48lakhs with there being a net addition (in Q3FY21) of around 7000.

Deferred revenue (subscriptions due and spread out over the next few quarters) stood at ₹ 633 crore. Subscriptions account for 95 per cent of the company’s turnover

A positive fall out of the pandemic has increased “buyer queries” on the site. Queries are up, 30-40 per cent. Against an average traffic (on the buyer site) of 60 million per month, post-Covid traffic numbers have increased to around 85 million, a month.

However, customers — those listing on the site – continue to prefer short-term one-month subscriptions and memberships; over long-term plans of one-year or three-years. This made the company come-up with six-month packages.


According to Agarwal, IndiaMART saw a recovery “across the board”. Collections from the customers for the period reached ₹ 179 crore, a sequential growth of 9 per cent, quarter-over-quarter.

The December 2020 collections were better than December 2019, pre-COVID levels and business inquiries delivered increased by 37 per cent, YoY, to 154 million with “90 days repeat buyers standing at about approximately 60 per cent”.

“Now, we are back to March 2020 paying customer levels and growth should be positive going forward. Factors like offices opening up, face-to-face meetings resuming, medium-scale businesses regaining confidence, stronger performance of the manufacturing sector and steady economic recovery coupled with the slowing down of infections and speeding up of vaccinations would be important indicators in coming quarters,” Agarwal said.

Indiamart board nods floor price of Rs9065.61 per share aggregating Rs1,070cr to eligible QIBs; stock gains 1% | Indiainfoline


Indiamart Intermesh Limited updated the exchanges Monday about the allotment of equity shares of the face value of Rs10 each by the company to qualified institutional buyers (QlBs) under-qualified institutions placement (QIP).

The Fund Raise Committee of the Board, at its meeting held on Monday, has considered and approved the allotment of Equity Shares at a price of Rs8,615 per equity share (including a premium of Rs8,605 per equity share, which takes into account a discount of 4.97%, to the floor price of Rs9065.61 per equity share, aggregating to over Rs1,070cr to successful eligible QIBs.

The QIP issue opened on February 17, 2021 and closed on February 22, 2021. Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased from Rs29.12cr divided into ~2.9cr equity shares of Rs10 each to Rs30.36cr divided into 3.04cr equity shares on Rs10 each.

At around 10.05 am, Indiamart Intermesh Ltd was trading at Rs8931.20 per piece up Rs115.00 or 1.30% from its previous closing of Rs8,816.20 per piece on the BSE.

Systematix Group

Stocks To Watch: Bharti Airtel, Bharat Forge, Hindalco, IndiaMART InterMESH, Info Edge, Vedanta | Bloomberg Quint

Bloomberg Quint

Indian equities fell the most in two months on Monday, ending lower for the fifth straight session as a rise in active Covid-19 cases across the country dented sentiment. The S&P BSE Sensex ended 2.2% or 1,145 points lower at 49,744 while the NSE Nifty 50 index fell 2% or 300 points to end at 14,675.

Here are the stocks to watch in trade today:

  • Hindalco: Is targeting a $2.9 billion reduction in its debt load between June 2020 and end of 2022. The group’s gross debt is estimated to be $9.2 billion, or 3x its Ebitda, as of March 31. The company aims to achieve a net debt/Ebitda ratio of 2.5x in less than two years. The company’s Novelis unit plans to repay a $1.1 billion bridge loan by March. Further, the company will refinance $540 million of $810 million INR bonds due in 2022 and repay the balance $270 million. Further the company expects to generate $1 billion to $1.2 billion cash flow a year after normal working capital and maintenance capex. Allocation toward growth capex seen at $2.5 billion to $3 billion over the next five years. The company will also focus on higher shareholder returns; plans to achieve it through inc
  • Bharati Airtel: Will meet global fixed income investors on or after February 23, post which the company will take a final decision on the issuance of foreign currency bonds, subject to market conditions. The Bharti Airtel board had earlier this month approved fundraising plan of up to Rs 7,500 crore via debt instruments such as debentures and bonds, in one or more tranches.
  • Bharat Forge: Has announced a pact with Paramount Group for production of armoured vehicles in India. The agreement was signed by both companies during the International Defence Expo (IDEX 2021) held in Abu Dhabi. This collaboration brings together the manufacturing and technology excellence of two leading companies, which have matching synergies and complementary capabilities. The Kalyani M4 is a fantastic new generation vehicle, and we want to position it as the ‘future of protection’ in all markets world-wide, said Amit Kalyani, Deputy Managing Director of the company.
  • IndiaMART InterMESH: Closed the QIP issue on February 22 and accorded its consent for the issue of 12.42 lakh shares of Rs 10 each at a price of Rs 8,615 per share at a premium of Rs 8,605 per share taking into a discount of 4.97% i.e. Rs 450.61 per share to the floor price of Rs 9,065.61 per share, aggregating to Rs 1,070 crore. The floor price is at the premium of 2.82% of Monday’s closing price
  • Zuari Agro Chemicals: To sell its fertilizer plant in Goa and associated businesses to Paradeep Phosphates for an enterprise value of $280 million. The sale is subject to agreed adjustments for capex, cash, debt and working changes. Paradeep Phosphates plans to fund the acquisition partly from public issue and balance from loans and internal accrusals.
  • IRB Infrastructure Developers: Has approved the allotment of Secured NCDs aggregating to Rs 2,184.55 crore on a private placement basis to India Toll Roads for a tenure of 7 years at a coupon rate of 9.927% per annum.
  • Page Industries: Has approved the appointment of VS Ganesh as Executive Director & Chief Executive Officer of the Company for a period of 5 years effective June 1, 2021.
  • Vedanta: GR Arun Kumar has resigned from the post of Whole-Time Director & Chief Financial Officer of the company to pursue career outside of the Group.

Pledge Share Details

  • Solara Active Pharma Sciences: Promoters (Pronomz Ventures LLP, Chayadeep Ventures LLP and Chayadeep Properties) revoked pledge of 7.22 lakh shares between February 16-19.
  • Wockhardt: Promoter Themisto Trustee Company created a pledge of 39 lakh shares on February 19.
  • Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 66.10 lakh shares on February 16. Deepak Fertilisers & Petrochemicals C
  • Deepak Fertilisers & Petrochemicals Corporation: Promoter Robust Marketing Services created a pledge of 20.20 lakh shares on February 18.
  • Steel Strips Wheels: Promoter Dheeraj Garg revoked pledge of 24,839 shares on February 22. As Reported On February 22.

Bulk Deals

  • Muthoot Capital Services: Saif India VI FII Holdings bought 4 lakh shares (2.43%) at Rs 397.5 per share.
  • Gabriel India: Asia Investments bought 30.30 lakh shares (2.11%) at Rs 111.97 per share. KYB Corporation sold 32.39 lakh shares (2.25%) at Rs 111.95 per share.

IndiaMART InterMESH gains on successfully raising funds via QIP | Yahoo Finance

Yahoo Finance

The fund raise committee of the company’s board approved allotment of 12,42,212 equity shares to eligible qualified institutional buyers at the issue price of Rs 8,615 per equity share. The QIP issue opened on 17 February 2021 and closed on 22 February 2021.

Allottees who were issued more than 5% of the total equity shares offered in the qualified institutions placement (QIP) are Arisaig Asia Consumer Fund (22.463%), Platinum Asia Fund (11.060%), Driehaus Emerging Markets Growth Fund (9.105%) and Kotak Funds – India Midcap Fund (8.196%).

Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased from Rs 29,12,15,160 divided into 2,91,21,516 equity shares to Rs 30,36,37,280 divided into 3,03,63,728 equity shares.

IndiaMART proposes to utilize the net proceeds for its future growth and expansion. The net proceeds may be utilized for augmenting long term cash resources, funding the organic or inorganic growth opportunities in the area of the Company’s operations and adjacencies, making investments in companies including in subsidiaries, joint ventures, associates or otherwise (either through debt or equity or any convertible securities), growing existing businesses or entering into new businesses in line with the strategy of the Company or for any other general purposes as may be permissible under the applicable law and approved by the board.

IndiaMART is India’s largest online B2B marketplace for business products and services. The company makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.

The company reported 29.35% rise in consolidated net profit to Rs 80.20 crore on 9.2% rise in total income to Rs 198.20 crore in Q3 December 2020 over Q3 December 2019.

Indiamart Intermesh allots equity shares aggregating Rs 1070.16 cr under QIP issue | Business Standard

Business Standard

Indiamart Intermesh announced that the Fund Raise Committee of the Board at its meeting held on 22 February 2021 has approved the allotment of equity shares at a price of Rs 8615 per equity share (including a premium of Rs 8605 per equity share which takes into account a discount of 4.97% to the floor price of Rs 9065.61 per equity share aggregating to Rs 1070.16 crore to successful eligible QIBs.

The issue opened on 17 February 2021 and closed on 22 February 2021.

Pursuant to the allotment of equity shares, the paid up equity capital of the company stands increased to Rs 30.36 crore dividend into 3,03,63,728 equity shares of Rs 10 each.

Equity Bulls