IndiaMART
Company typePublic
ISININE933S01016
Industry
Founded1996; 28 years ago (1996)
Founders
Headquarters
Noida, Uttar Pradesh
,
India
Area served
India
RevenueIncrease ₹985 crore (US$120 million) (FY23)[1]
Decrease ₹284 crore (US$36 million) (FY23)[1]
Number of employees
3049
Subsidiaries
  • Tolexo
  • Tradezeal International
  • Busy Infotech[2]
Websiteindiamart.com

IndiaMART InterMESH Ltd is an Indian e-commerce company headquartered in Noida which has been listed as a "notorious market" since 2018 by the USTR for selling counterfeit products and illegal pharmaceuticals.[3][4][5][6] It provides B2B and customer to customer sales services via its web portal.[7] The company began in 1996 when Dinesh Agarwal and Brijesh Agrawal founded the website IndiaMART.com,[8] a business-to-business portal to connect Indian manufacturers with buyers.[9][10]

History

IndiaMART was launched in 1996 as a directory of the websites for customers in the Delhi-NCR region by two cousins Dinesh Agarwal and Brijesh Agrawal.[8][11][12] At that time India had only 15,000 internet users.[13] By 1999, the directory had more than 1,000 listings.[14]

After overcoming the dot-com bust, in 2008–09 when the recession hit the US, the company decided to pivot the focus from export oriented business to India-focused B2B market and raised $10 million in Series A round funding from Intel Capital, a part of which was invested in IndiaMART, One97 Communications and Global Talent Track.[15][16][17]

In November 2014, IndiaMART started promotional campaigns featuring Indian film actor Irrfan Khan as its brand ambassador with phrase "IndiaMART Aur Kya".[18]

In March 2016, it raised Series C Funding from Amadeus Capital Partners and Quona Capital to scale up the activities of IndiaMART and Tolexo.[19]

In 2016 and 2019, IndiaMART invested in ProcMart and Vyapar.[20][21]

In June 2018, IndiaMART filled draft papers with SEBI to raise ₹600 crore through IPO and list on NSE and BSE.[22] On July 4, 2019, IndiaMART went public[23] via an IPO of ₹474 crore.[24][25] The issue was oversubscribed by 36 times by the end of the final day of the bidding.[25] IndiaMART became the first online B2B marketplace to go public in India, and the first company to launch its IPO in the second tenure of Modi government.[26][27]

As of 2019, IndiaMART was the largest Indian e-commerce platform for businesses with about 60% market share, according to KPMG.[27]

Financials

IndiaMart's revenue registered a 29% CAGR over FY19 to ₹507 crore while it reported a net profit of ₹20 crore in FY19, according to a note from Angel Broking.[28] It has zero debt and sizeable cash balance. As of 31 March 2019, the company had 8.27 crore (82.70 million) registered buyers and had 55.5 lakh (5.55 million) supplier storefronts in India and expect to maintain a compounded annual growth rate (CAGR) of 29 per cent for the next two years.[29]

It handles 97,000 product categories — ranging from machine parts, medical equipment and textile products to cranes, from thousands of towns and cities of India.[27] Agfa HealthCare India, Case New Holland Construction Equipment (India), Hilti India, JCB India and Nobel Hygiene are a few big suppliers on the company's marketplace.[30]

IndiaMART had an aggregate of 32.5 crore (325.8 million), 55.2 crore (552.6 million) and 72.3 crore (723.5 million) visits in fiscals 2017, 2018 and 2019, respectively, of which 20.4 crore (204.8 million), 39.6 crore (396.9 million) and 55 crore (550.3 million) were mobile traffic, which is 63%, 72% and 76% of total traffic, respectively.[31] The IndiaMART app has more than 1 crore (10 million) downloads with a 4.7 App rating on Android.[32]

Legal issues

In November 2020, IndiaMART filed a copyright infringement lawsuit against Justdial before the Delhi High Court on allegations of copying website compilations for the proposed JD Mart business-to-business marketplace.[33][34]

In August 2021, IndiaMART suffered a data breach where 38 million user records were exposed, including more than 20 million email addresses, names, phone numbers and physical addresses.[35]

IndiaMART has been listed as a "notorious market" since 2018 by the USTR for selling counterfeit products and illegal pharmaceuticals.[3][4][5][6]

References

  1. ^ a b "IndiaMART net profit flat at Rs 56 crore in Q4; revenue rises 33% to Rs 269 crore - ET Retail". ETRetail.com. The Economic Times. Retrieved 9 July 2023.
  2. ^ "B2B marketplace looking to raise ₹600 crore". Medianama. 5 July 2018. Retrieved 19 July 2018.
  3. ^ a b "2017 Out of Cycle Review of Notorious Markets" (PDF). Office of the United States Trade Representative. 11 January 2018. Archived (PDF) from the original on 23 December 2020. Retrieved 10 January 2021.
  4. ^ a b "2018 Out of Cycle Review of Notorious Markets" (PDF). Office of the United States Trade Representative. 25 April 2019. Archived (PDF) from the original on 10 December 2020. Retrieved 10 January 2021.
  5. ^ a b "2021 Review of Notorious Markets for Counterfeiting and Piracy" (PDF). Office of the United States Trade Representative. 17 February 2022. Archived (PDF) from the original on 19 February 2022. Retrieved 28 February 2022.
  6. ^ a b "2022 Review of Notorious Markets for Counterfeiting and Piracy" (PDF). Office of the United States Trade Representative. 31 January 2023. Archived (PDF) from the original on 2 February 2023. Retrieved 28 March 2023.
  7. ^ Payal Ganguly (29 June 2015). "IndiaMart ropes in Mudit Khosla to cater to sourcing needs of large companies". Times of India. Retrieved 27 January 2016.
  8. ^ a b Disha Sharma (4 January 2016). "Indiamart's Agarwal backs office products portal ProcMart". VCCircle. Archived from the original on 25 October 2016. Retrieved 27 January 2016.
  9. ^ Varun Jain (16 September 2015). "Indiamart eyes Rs 2,000 cr revenue by 2020". Indiatimes.com. Retrieved 27 January 2016.
  10. ^ Ankita Rai (17 August 2015). "IndiaMART: Small business means big business". Business Standard. Retrieved 27 January 2016.
  11. ^ "B2B ecommerce marketplace IndiaMart posts profit of Rs 31.4 Cr in first quarter of FY20". Daily Hunt. 1 August 2019. Retrieved 9 October 2019.
  12. ^ Soumya Gupta (21 February 2017). "IndiaMART To Stream 50% of Revenue from Big Brands by 2020". Business World. Retrieved 13 October 2019.
  13. ^ Dijbijay Mishra (22 July 2019). "'Dot-com bust was the best thing that happened to us'". Times Of India. Retrieved 12 October 2019.
  14. ^ VCCircle (21 January 2011). "Indiamart to raise Rs 100cr via PE route". Money Control. Retrieved 10 October 2019.
  15. ^ Times News Network (15 January 2009). "IndiaMart.com gets funds from Intel Capital". Times of India.
  16. ^ "IndiaMart.com gets funds from Intel Capital". Times of India. 14 January 2009. Retrieved 27 January 2016.
  17. ^ N Sundaresha Subramanian (16 July 2015). "Rs 1 crore a day is not far away for PE-backed Indiamart". Business Standard. Retrieved 27 January 2016.
  18. ^ Press Trust of India (18 November 2014). "IndiaMART ropes in actor Irrfan Khan as brand ambassador". Business Standard. Retrieved 11 October 2019.
  19. ^ "Indiamart raises Series C funding from Amadeus Capital, WestBridge & others". VCCircle. 9 March 2016. Archived from the original on 20 July 2016. Retrieved 3 June 2016.
  20. ^ aparnamishra.06 (21 June 2016). "IndiaMART Invests In B2B Marketplace ProcMart". Inc42 Media. Retrieved 15 July 2020.((cite web)): CS1 maint: numeric names: authors list (link)
  21. ^ S.H, Salman (3 September 2019). "IndiaMART leads Series A investment in Vyapar". livemint.com. Retrieved 15 July 2020.
  22. ^ "IndiaMART Files Draft Papers To Raise $88.24 Mn". inc42. 3 July 2018. Retrieved 3 July 2018.
  23. ^ ET Markets.com (21 June 2019). "IndiaMART IPO opens on Monday; here's what you need to know". Economic Times. Retrieved 13 October 2019.
  24. ^ RTI (24 June 2019). "IndiaMart IPO opens, to raise over Rs 474 crore". Times Now News. Retrieved 12 October 2019.
  25. ^ a b NDTV Profit Team (26 June 2019). "IndiaMART InterMESH IPO Fully Subscribed On Day 2". NDTV Profit. Retrieved 8 October 2019.
  26. ^ Swaraj Singh Dhanjal (18 June 2019). "Indiamart set to become first firm to test IPO market under Modi 2.0". Live Mint. Retrieved 10 October 2019.
  27. ^ a b c Manish Singh (6 July 2019). "A 23-year-old B2B company has shown how keen India is for tech IPOs IndiaMART is the first business-to-business e-commerce firm to go public in India". Tech Crunch. Retrieved 15 October 2019.
  28. ^ PTI (21 April 2019). "IndiaMart expects 29% CAGR revenue growth in next 2 years". Live Mint. Retrieved 12 October 2019.
  29. ^ PTI (21 April 2019). "IndiaMart expects 29 pc CAGR revenue growth in next 2 yrs". Deccan Chronicle. Retrieved 11 October 2019.
  30. ^ Red Herring Prospectus (17 June 2019). "IndiaMART InterMESH LIMITED" (PDF). EdelweissFin.com. Retrieved 13 October 2019.
  31. ^ "INDIAMART INTERMESH LTD. (INDIAMART) - COMPANY HISTORY". Business Standard India. Business Standard. Retrieved 3 October 2019.
  32. ^ "IndiaMART App Crosses 10 Million Downloads and is Rated 4.6 Stars by Users on Google Play Store". Press Trust Of India. 30 April 2019. Retrieved 3 October 2019.
  33. ^ Bhalla, Madhurima Nandy, Tarush (18 November 2020). "Indiamart, JD in legal war over copyright violations". mint. Retrieved 17 December 2020.((cite web)): CS1 maint: multiple names: authors list (link)
  34. ^ "Clash of Marts | Lexology". www.lexology.com. 25 November 2020. Retrieved 17 December 2020.
  35. ^ Shukla, Sidhartha; Sharma, Disha; John, Nirmal (23 August 2021). "Data breach or data scraping? With over 38 million records up for grabs, IndiaMART has some answering to do". The Economic Times. ISSN 0013-0389. Retrieved 27 June 2023.

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