ABOUT
Founded in 1999 IndiaMART is India’s largest online B2B
marketplace, connecting buyers with suppliers.
With 60% market share of the online B2B Classified space in India,
the channel focuses on providing a platform to Small & Medium Enterprises
(SMEs), Large Enterprises as well as individuals.
IndiaMart operates in various business sectors which include
Building& Construction, Industrial Machinery, Apparel & Garments,
Electronics & electrical, Industrial Supplies, Furniture Supplies and many
more.
It has 82.70 + million buyers, 5.55+ million sellers and 60.73+ million
product and services. The company’s mission is ‘to make doing business
easy’.
BUSINESS STRATEGY
Continue to increase the size of IndiaMART marketplace - The
Company’s major strategy is to focus on their non-paying and paying
supplier acquisition and customer service efforts which will help them
expand their marketplace. The company also believes that its marketplace
for the discovery of products and services is highly scalable. Last but not
the least the company aims at leveraging growth in mobile penetration to
increase their reach to people.
Attract larger suppliers and leading brands while growing their
core SME segment supplier base - IndiaMART seeks to make itself an
engaging and effective marketplace for the larger corporate and leading
brand suppliers while sustaining the efforts to grow strong SME supplier
base.
Enhance our buyers’ experience - Concentrating on their mission
IndiaMart continues to enhance buyers’ experience by providing them with
a comprehensive discovery platform backed by a suite of products and
services offered by a large number of suppliers that includes large brands.
IndiaMart tries to improve the quality and completeness of product and
service information on their marketplace listings, including price, photos,
and videos to help buyer’s shortlist the appropriate suppliers easily.
Improve supplier engagement, services, retention, and
monetization - IndiaMART tries to have maximum engagement with its
suppliers, which includes Indian SMEs and large businesses. IndiaMart
regularly work on improving its management systems and further
personalize their suppliers’ experiences so that the platform turns out to be
advantageous for marketing their products and services.
Continue investing in our mobile platforms and capabilities -
Based on KPMG reports the number of internet subscribers is projected to
increase 867 million by fiscal 2022 which will continue to drive the growth of
online commerce in India. IndiaMart intends to further encourage the use of
mobile platforms by suppliers and buyers through targeted marketing
initiatives. It also aims at offering innovative and effective solutions such as
integrated voice search, and encourages the buyer to use mobile platforms
to upload their Request for quotation (RFQs).
INITIAL PUBLIC OFFER (IPO)
Bid/Offer Opens On June 24,2019
Issue Type Book Building Issue IPO
Bid/Offer Closes On June 26,2019
Issue Price Rs 970-973
Issue Size 475.59 Cr
Face Value Rs 10 per Equity Share
Market Lot 15
Listing At NSE,BSE
PROMOTERS
DINESH CHANDRA AGARWAL
BRIJESH AGRAWAL
SHAREHOLDING PATTERN
Name of Number of Equity Percentage of Share
Shares Capital(%)
Shareholders
Dinesh Chandra Agrawal 9,483,200 38.37
Brijesh Agrawal 6,426,200 26.00
Intel Capital
2,076,291 8.40
(Mauritius),Limited
Accion Frontier
950,668 3.85
Inclusion Mauritius
Madhup Agrawal 793,000 3.21
Westbridge Crossover
597,034 2.42
Fund, LLC
Amadeus EIII LLP 597,014 2.42
Dinesh Gulati 529,500 2.14
Vikas Aggarwal 211,920 0.86
Amadeus IV DPF 170,502 0.69
Limited
Others 11.66
Total 100
INDUSTRIAL ANALYSIS
Sectorial composition of GDP (%)
Sector 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Agriculture &
17.8 17.8 16.5 15.4 15.3 14.6
allied activities
Industry 22.7 22.3 22.5 23.7 23.7 22.8
Manufacturing 17.4 17.2 17.3 18.1 18.2 17.8
Services 59.5 59.9 61.0 61.3 61.1 62.3
INTERNET GROWTH IN INDIA
The number of internet subscribers in India is expected to increase from
446 million as on December 2017 to nearly 900 million by FY22 primarily
driven by growth in wireless broadband services.Wireline broadband
services are expected to grow at a comparatively gradual rate due to
constraints around high initial investment in deployment of fixed line
infrastructure and increased user preference to use internet on the go.
THE MSME MARKET IN INDIA
Growth of MSMEs
(Figures in Millions)
2015-16 2006-2007 Growth Rate(%)
No. of MSMEs 63.39 36.18 6.43
Manufacturing 19.67 11.50 6.14
Services 43.72 24.68 6.56
Share of MSME sector in GDP(%)
(Figures in Millions)
2011-12 2012-13 2013-14 2014-15
MSME
contribution to 6.16 6.27 6.27 6.11
Manufacturing
MSME
contribution to 23.81 24.13 24.37 24.63
Services
Year on Year Revenue growth
GLOBAL ADVERTISING TRENDS – THE SHIFT TOWARDS DIGITAL
ADVERTISING
Global % share of advertisement spend-Increase in digital spend
Spends on Digital advertising (INR billion)
THE INDIAN CLASSIFIEDS MARKET
The digital classifieds market in India is a combination of horizontal and
vertical players. The horizontals offer listing across a host of goods and
services, ranging from real estate, home services, pet care, used goods to
medical suppliers. On the other hand, the vertical players focus on a single
product/service category such as matrimonial, recruitment services etc.
Growth of digital classifieds (2017-2022F)
Category distribution of digital classifieds(FY2017 vs FY2022)
Growth in B2B digital classified(FY2017-FY2022)
E-COMMERCE IN INDIA (INR BILLION)
Percentage of online SMEs using E-commerce
Number of suppliers on a select B2B e commerce platforms
B2B platform No. of users No. of suppliers
Indiamart 59.8 million 4.7 million
Trade India 4.3 million NA
Industry Buying NA 5,000-6,000
Moglix NA ~2,000
Growth in number of paying customers for IndiaMart
COMPANY ANALYSIS
FINANCIAL OVERVIEW
(Figures in Millions)
Year
Total Rate of
Total Assets
Rate of
Total Expenses
Rate of
Change Change Change
Revenue
2016 2,510.09 1946.46 3,821.22
2017 3,319.36 32.24 2,209.06 13.49 3,960.80 3.65
2018 4,295.26 29.4 5,427.13 145.67 4,896.23 23.62
Total Revenue
Total Assets
Total Expenses
STATISTICAL OVERVIEW
The following table and graph shows the return on equity and earning per share between 2016 to
2018 :
Year RONW(%) EPS(Rs)
2016 40.23 71.75
2017 16.50 35.04
2018 17.04 28.60
REFERENCES
SEBI PROSPECTUS
https://www.indiamart.com/
