Indiamart Intermesh Ltd
NSE:INDIAMART
Indiamart Intermesh Ltd
Indiamart Intermesh Ltd., a pioneer in India’s B2B marketplace sector, has woven the intricate threads of technology and commerce into a robust platform that connects millions of buyers and suppliers. Founded in 1996 by Dinesh Agarwal and Brijesh Agrawal, the company emerged at a time when the Indian market was ripe for digital transformation. By facilitating seamless interactions between businesses through its digital platforms, Indiamart positions itself as an intermediary that removes traditional barriers in trade. Unlike direct e-commerce platforms, Indiamart does not sell products itself but instead provides business listings across diverse categories like electronics, apparel, machinery, and more. Through this, it becomes a crucial catalyst in the transactions, while also offering various services such as showcasing products, lead generation, and facilitating purchases.
Revenue generation for Indiamart primarily stems from subscription fees that suppliers pay for premium listing and advertising services, granting them enhanced visibility to an expansive audience. The company also monetizes through a 'freemium' model where basic listings are free but additional features come at a price. This model draws parallels to how commercial real estate leases work, where the digital space is rented out in tiers, from basic enough to attract entry-level participants, to comprehensive packages that cater to larger, visibility-seeking suppliers. By continuously refining its digital toolkit in alignment with evolving market needs, Indiamart not only amplifies connectivity within India’s vast business ecosystem but also steadily climbs the ladder of profitability.
Indiamart Intermesh Ltd., a pioneer in India’s B2B marketplace sector, has woven the intricate threads of technology and commerce into a robust platform that connects millions of buyers and suppliers. Founded in 1996 by Dinesh Agarwal and Brijesh Agrawal, the company emerged at a time when the Indian market was ripe for digital transformation. By facilitating seamless interactions between businesses through its digital platforms, Indiamart positions itself as an intermediary that removes traditional barriers in trade. Unlike direct e-commerce platforms, Indiamart does not sell products itself but instead provides business listings across diverse categories like electronics, apparel, machinery, and more. Through this, it becomes a crucial catalyst in the transactions, while also offering various services such as showcasing products, lead generation, and facilitating purchases.
Revenue generation for Indiamart primarily stems from subscription fees that suppliers pay for premium listing and advertising services, granting them enhanced visibility to an expansive audience. The company also monetizes through a 'freemium' model where basic listings are free but additional features come at a price. This model draws parallels to how commercial real estate leases work, where the digital space is rented out in tiers, from basic enough to attract entry-level participants, to comprehensive packages that cater to larger, visibility-seeking suppliers. By continuously refining its digital toolkit in alignment with evolving market needs, Indiamart not only amplifies connectivity within India’s vast business ecosystem but also steadily climbs the ladder of profitability.
Revenue Growth: IndiaMART reported consolidated revenue from operations of INR 402 crores in Q3 FY26, up 13% year-on-year.
Collections Acceleration: Collections from customers grew 17% year-on-year to INR 426 crores, outpacing revenue growth.
Supplier Base Decline: The number of paying suppliers declined by 1,000 to 221,000, mainly due to a price increase and seasonality.
Profit Boosted by One-Time Gain: Net profit was INR 188 crores, aided by an INR 82 crore fair value gain on a strategic investment.
ARPU Trend: Average revenue per user growth moderated to a long-term trend of 6%–8%, in line with management’s guidance.
Deferred Revenue & Cash Position: Deferred revenue rose 19% year-on-year to INR 1,775 crores; cash and treasury balance stood at INR 3,051 crores.
Tech Investment: The company is investing in AI-enabled technologies and product upgrades to improve user experience and engagement.
Guidance Caution: Management expressed caution on whether higher collection growth will become a sustained trend, pending further quarters’ results.
