Indiamart Intermesh Limited

Abhisek Banerjee:

Dinesh Chandra Agarwal:

Abhisek Banerjee:

Jitin Diwan:

I was talking about the virtuous loop that we used to talk about when our net additions were going up steadily and active buyers is also going up. Now that both are in a decline. Is there a worry of falling into a vicious loop?

Yes, there is definitely a worry of falling into the vicious loop because that virtuous cycle where the suppliers were increasing and buyers were increasing. Suppliers, we were increasing and buyers were increasing because the total Internet size was increasing. Now if it has to increase, the buyers have to come more frequently and supply side has to become more trustable and more better. So I think that's where we have hit a little bit of a saturation point, but we are trying our best to find out what will keep bringing the buyers with a better frequency and what will keep the sellers with a better retention. So I think, this is a typical S curve that you find, it's the growth-consolidation.

And in every growth side of it, you will find that this virtuous cycle keeps on increasing and improving better and better and better. But every time you hit the plateau side of the S curve, you need to further scratch the surface to find even better product market. So if I can go back in time, earlier we were purely, purely supplier name and phone number and e-mail ID listing. And then we became a product listing, then we became a product with price listing, then we became product with price and specification listing, and then we became product with price and specification and photos and videos and reviews listing.

So I think every time we improve the supply side better and similarly, the verified supplier base and then the GST supplier base, I think we need to find one such more lever for us to go to the second, I mean, enhanced layer of the S curve and that is where we are.

Alibaba has matured into multiple revenue items including fulfilment, lending, software enablement and payments; IndiaMART believes fulfilment can be done by signing or partnering with firms like Porter and Shiprocket, and does not need much payment build because Indian payment infrastructure is very good.

Aman Thadani:

Brijesh Kumar Agrawal:

Thanks for the opportunity. I have a few questions pertaining to BUSY. The first is, over the last three years, we have seen a very good revenue growth, approximately 28% compounded and now that is ex of accounting change. That growth is despite a 10% growth in license year-on-year, which sort of implies a very good revenue per license expansion. Just wanting to understand that what has led to this meaningful growth in revenue per license, and standing today, sort of what trajectory or sustainable trajectory can we look at for the license growth and ARPU growth in BUSY over the next five years?

So when we look at the overall breakup of the growth, which is that 28% CAGR growth that you see, one obviously is led by the sales of these licenses. Second is increase in the prices of the products. Third is improvement in the overall ratio of customers which are renewing year-on-year. And fourth component, what portion of these customers are taking on add-on products like the mobile app available inside of BUSY. So when you look at this growth, it is a function of these four things. And our sense is that over the next couple of years, we will continue to maintain or improve the overall CAGR growth that we've had. That is what is visible.

When you look at a five-year duration, I can say what is it that we would want to do more than what is it that we can go back and predict from today. We would want this business to become at least a 35-40% CAGR business year-on-year. That would be work in progress. But over the next couple of years, I think we can definitely expect us to be closer to anything between, let's say 2730% CAGR growth rate, that we've seen over the last four years.

indiamart

Aman Thadani:

Brijesh Kumar Agrawal:

Aman Thadani:

Got it.

And a related question to that is with the number of employees, I think there has been some rationalisation on the employees also.

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indiamart

Jitin Diwan:

Swapnil Potdukhe:

Jitin Diwan:

Swapnil Potdukhe:

Jitin Diwan:

Avijit Vikram:

Prateek Chandra:

The second question was like the number of employees that you have reported, 6,200 something. It was 6,300 in the previous quarter. Is this some kind of a rationalisation exercise? And is it linked to the employee expenses going down also in a way? Any particular reason for that? And what are the thought process on the number of employees going up or going ahead?

Let me answer the first question. So if you remember, last quarter, there was a labour code impact, which we had taken. It was about Rs. 8.5 crores if I remember, which we had taken last quarter, and that's how it is looking like the expense has reduced. So that is not the case. On the employee count, it has reached to 6,200 as we speak. There is no rationalisation as such. There are like campus hiring, etc., which we do on a periodic basis just to scale up our servicing and sales team, but no rationalisation by design as such, which we are trying to do. I hope that answers your question.

Anmol Garg:

Dinesh Chandra Agarwal:

Anmol Garg:

professional version or where you have a WhatsApp kind of an integration. So that contributes to some value-added revenue. There are a few other planned items on the Lead Management side, but they are not significant yet that that can be reported as a separate line item.

So export, again, as we started sometime around 2020, become a separate business altogether with almost Rs. 50 - 60 crores of collections. It was always there even when we were purely domestic at maybe Rs. 20 - 25 crores, but now it has become Rs. 60 - 70 crores of business. And you can look at our export-oriented website at export.indiamart.com. So that's there. We continue to maintain certain value-added experiments, which are towards logistics and credit facilitation, but those still remain very, very pilot and experimental and not yet have resulted into anything substantial. Hopefully, that answers your question.