IndiaMART InterMESH managed to report quarter-on-quarter revenue growth even amid the semi lockdown in the first quarter. The company recorded a net profit of Rs 88 crore and consolidated revenue of Rs 182 crore in the quarter ended June 30, 2021.

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However, its paying subscribers have declined sequentially.

Dinesh Agarwal, Founder and CEO of IndiaMART InterMESH said, “There has been some sequential loss.” He said that he also clarified on a con call with investors that most of the customers that have been lost are from the lowest most limited silver monthly customers and that is why there has been a sudden spurt in the average revenue per customer.

On competitive pressure, Agarwal said, “We have not heard of any competitive intensity in the B2B segment. As far as the new owner for Just Dial, we would wait for their commentary on what are their plans going forward. Because between IndiaMART and Just Dial, there are no categories that are common, most of the categories that they deal in are very different consumer services category, whereas IndiaMART is mostly B2B products, which are industrial and raw material and components in nature.”

He added that the business model of the two firms may look very similar, being classified in direct business, however, the categories and the target audience remain very different.

On the average revenue per user (ARPU), Agarwal said, looking at the long-term trend, the company has moved from 33,000 about 3-4 years ago to about 45,000 and that has consistently gone up at a CAGR of 5-6 percent.

“However, given that in the last year our paying customer base was 1,47,000 customer and it still remains at 1,47,000 because of the two lockdowns when we lost customers and two separate quarters when we gained customers. So ARPU is showing a temporary jump which should normalise back to 45,000 levels after we get our customer growth back post-pandemic,” he said.

For the full interview, watch the accompanying video...

(Edited by : Kanishka Sarkar)

First Published:Aug 5, 2021 3:56 PM IST