For the quarter ending 31st March, 2025, IndiaMART InterMesh Ltd., the country’s top B2B online marketplace, recorded a noteworthy 13 per cent increase in the consolidated revenue, hitting Rupees 355 crore.
Improved realisations from paying suppliers, especially the platinum client sector, are the main cause of this development.
The founder and CEO of IndiaMART, Dinesh Aggarwal, highlighted the critical role that platinum customers play in propelling the company’s growth trajectory in an exclusive conversation with ETRetail.
Financial Performance Overview of IndiaMART
Consolidated EBITDA boosted to rupees 131 crore, which indicates a strong 37% margin. Whereas IndiaMART’s net profit jumped by 81% to rupees 181 crore.
With approximately Rupees 270 crore in operating cash flow during the quarter, IndiaMART’s financial stability was strengthened, as well as some of the strategic investments were made possible.
Platinum Customers’ Effects
Aggarwal emphasized that the top 25% of consumers, known as platinum customers, were mostly responsible for the company’s success in terms of Average Revenue Per User (ARPU) improvements. These clients have grown dramatically and now account for a sizable portion of the business’s income. This growth has been further accelerated over the last two years by the adoption of industry-based differential pricing, which has been highly received by the sales team and the industry.
Technological Developments and Strategic Initiatives
IndiaMART is funding a number of strategic projects to improve product-market fit and further deepen supplier engagement:
Integration of Artificial Intelligence: In order to increase the precision of its competitive search engine, the company is using AI to better categorise its products. Micro and small enterprises looking for ready-made methods for digitising their products will especially benefit from this effort.
Business Integration for WhatsApp: In order to better interact with suppliers and customers, the company switched from a call-based system to WhatsApp Business accounts, which are in line with modern communication preferences.
Improved Algorithms for Matchmaking: IndiaMART order to decrease supplier rivalry and promote greater engagement, IndiaMART has improved its algorithms to limit the number of providers presented to a single buyer.
Overcoming Obstacles in the Silver Client Sector
IndiaMART has to deal with greater churn rates among silver customers, even if platinum clients have contributed significantly to revenue growth.
According to Aggarwal, the monthly churn rate for silver monthly customers is roughly 7-8%, while the yearly turnover rate for silver annual customers is roughly 40%. In comparison, platinum and gold customers had lower monthly turnover rates of 0.5% and 1%, respectively.
To lessen these difficulties, the business is continuously trying to enhance retention tactics and product-market fit for the silver category.
Plans for Investment and Expansion
With a strong balance sheet that includes cash reserves of ₹2,900 crore, IndiaMART is making strategic investments in acquisitions and technology to strengthen its position in the industry.
A ₹90 crore stake in IDfy and expanded interests in businesses like SuperProcure, RealBooks, LiveKeeping, M1xchange, and Bizongo are a few of the examples of recent investments. In order to support the company’s long-term growth goals, these investments are intended to improve its fintech and SaaS capabilities.
Prospects for the Future
With a focus on industries with prospective growth, including construction, fashion, medical, and solar, IndiaMART intends to sustain an increase in revenue of 10% in unique business inquiries.
In an effort to broaden its product line and improve its market position, the business is also looking into introducing novel products and acquisitions.
In conclusion
Therefore, IndiaMART is well-positioned for long-term growth in the cut-throat B2B e-commerce market because of its strategic concentration on its technological advancements, focused investments, and high-value platinum clients.
It can be thus said that IndiaMART wants to maintain its position in the marketplace as the market leader by tackling some of the issues with its client retention as well as consistently improving the company’s platform.
