IndiaMART InterMESH: Imagine a bustling marketplace, not with bustling crowds, but with a symphony of clicks and messages. Businesses of all sizes, from the corner bakery to the tech giant, are connecting and collaborating in a virtual space. This is the world of B2B e-commerce, and at the heart of it lies Indiamart Intermesh.
Before Indiamart Intermesh, connecting businesses was a game of phone calls, endless emails and the frustration of finding the right partner. Now it’s a seamless dance. Indiamart Intermesh acts as the conductor, orchestrating connections that fuel the nation’s economic engine.
From local farmers and manufacturers finding a wider audience to established companies streamlining their supply chains, Indiamart intermesh empowers businesses to reach new heights. Come let’s get to know who they are in a detailed way
IndiaMart InterMESH
Indiamart Intermesh, is a prominent Indian e-commerce company headquartered in Noida. The company is often simply referred to as Indiamart. Indiamart was established in 1996, and has become a household name in the realm of (B2B) online classifieds. Their user-friendly platform connects buyers and sellers across various industries, offering a wider reach compared to traditional methods.
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By capitalizing the burgeoning internet usage in India, Indiamart established their platform at a nascent stage. They prioritized user experience by creating a user friendly platform that caters to both buyers and sellers. Suppliers can easily showcase their products and services, while buyers have access to a vast database of potential vendors and tools to initiate inquiries.
Indiamart goes beyond basic listings, establishing itself as a one stop shop for B2B needs. The impact of Indiamart on the Indian economy is undeniable. They’ve facilitated a significant rise in B2B transactions within India, streamlining the process and boosting overall economic activity. Small and Medium Enterprises(SMEs) have particularly benefited from this platform.
Indiamart provides them with a cost effective and efficient way to reach a wider audience and compete with larger companies. Come let’s get to know what made them as market leaders
Indiamart Intermesh’s competitive edge
Indiamart has rich expertise and brand recall built over years in the B2B online marketplace space in India. They have strong network effects and community effects stemming from their large supplier base and extensive buyer base across India. Indiamart has proprietary technology like behavioral data-driven algorithmic matchmaking to provide relevant matches between buyers and suppliers.
Their user friendly application with highly rated mobile apps facilitates easy product/supplier discovery, lead generation and management for buyers and suppliers. Their large MSME supplier base provides a diverse range of products and services to cater the pan-India demand. Indiamart has 100% organic traffic which indicates that they have a strong brand equity.
The company has an experienced leadership team and skilled workforce with deep domain expertise across various product categories and service operations. Indiamart has an extensive physical and digital sales/service network through representatives and channel partners providing national reach. Their core values like teamwork, integrity, responsibility and passion drive their culture and mission.
Indiamart Intermesh’s presence across India and diverse product categories
Indiamart has established a presence across 1000+ cities and towns in India, spanning metro cities as well as tier 2 cities.
Their buyer base includes:
- 25% from metro cities
- 45% from tier 2 cities
- 30% from smaller towns
Their supplier base includes
- 27% from metro cities
- 19% from tier 2 cities
- 54% likely from smaller towns and cities
Indiamart hosts a highly diverse range of product categories on its online platform, empowering businesses across various industries.
They feature around 98,000 different products spanning 108 million product listings across 56 industries on their platform. Their product categories cover a wide spectrum, catering to diverse business needs from FMCG, groceries to industrial machinery, engineering products, pharmaceuticals, electronics, automobile, chemicals and construction materials.
Their major product categories in terms of percentage of their paying supplier base includes:
- 8% in Fruits, vegetables, grains, dairy and other groceries.
- 7% in Spares and supplies, Industrial & Engineering products.
- 6% in Apparel, clothing and garments.
- 6% in Consumer electronics and household appliances
- 5% in Construction and building raw materials
- 5% in Packaging materials, supplies and machines
- 4% in Electrical equipment and supplies
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Strategic partnerships made by Indiamart Intermesh
Indiamart has formed strategic partnerships and enterprise solutions with numerous leading companies across various industries in India.
- For Building and Construction they have made partnerships with companies like Autoclor, Vectus, Ajax and Sany.
- They have made partnerships with companies like Unicorn, Aurico and Bluestar for the Healthcare industry.
- For the Automobile industry they have made partnerships with Mahindra truck and bus, Ashok Leyland and Piaggio.
- In the Hand and machine tool industry they have made partnerships with Hilti, Snap on and Hoffmann.
- Partnerships with Powerol, TMTL, Kirloskar and Sudhir helped to look into the Generators and Power system industry.
- For Industrial plant and machinery they have partnered with Schwing stetter and Hermle.
Through these strategic tie ups across industries with well known brands, Indiamart has established itself as a valuable digital partner, enabling businesses to expand their reach across India.
Indiamart Intermesh’s Financial Performance
Indiamart Intermesh’s consolidated revenue from operations grew by 17% year-on-year to Rs 315 crores in Q4 FY 24 and 21% to Rs 1,197 crores for the full year FY 24. Their consolidated collections from customers grew by 16% year on year to Rs 484 crores in Q4 FY 24. Even their consolidated EBITDA margin stood at 28% for both Q4 FY 24
Indiamart Intermesh’s Future plans
Indiamart Intermesh wants to improve customer retention and reduce churn rate. They see this as a key priority, especially for first year silver customers where they are seeing higher than expected churn rates. Mr Dinesh Agarwal the CEO of the firm said they are working on strategies to address and reduce this churn for the next few quarters.
Indiamart Intermesh wants to add 5000-6000 net new customers per quarter from the current lower levels. By doing this they will be able to achieve growth targets of 20-25% on a standalone basis.
Indiamart Intermesh wants to enhance their value offerings by constantly upgrading and innovating their product, technology and content offerings. By doing this they believe it adds more value to their premium gold/ platinum tier customers. The company plans to continue optimizing sales and marketing costs by focusing on more core markets and reducing spends in non profitable areas.
Indiamart Intermesh focuses on increasing their buyer base on their platform and this likely remains an area of consistent effort to drive better supplier monetization. Indiamart plans to maintain strong growth momentum for its subsidiary Busy Infotech to drive consolidated financial performance.
Conclusion
Indiamart Intermesh has established itself as the market leader in India’s B2B e-commerce space through its rich expertise, brand equity and value added offerings. However, maintaining this leadership will require addressing customer retention challenges, product innovation and expanding into untapped regions. Their focus on inorganic growth, strategic investments and improving operational efficiency can fortify their market position.
Executing well on innovation, expansion, prudent inorganic growth and financial strength can enable Indiamart to cement its first mover advantage. Inability to adapt swiftly may pose threats. Continued investments in technological leadership, supplier/buyer stickiness and responsiveness to market needs will determine Indiamart’s ability to successfully maintain its pole position in the rapidly evolving B2B e-commerce landscape.
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Written by Pavunkumar V M
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