For the third quarter Indiamart’s net profit jumped 120 per cent. Sales revenue rose 23 per cent. The rise in profit and revenue has been attributed to an increase in the number of paying subscribers as well as a higher realisation from existing customers. The company continued its growth despite the challenging business environment. Its focus on operational efficiency helped improve its profitability. Going forward, the e-commerce company is hopeful of witnessing an improvement in the macroeconomy and remains committed to strengthening its business model and enhancing the value proposition for customers. The company’s website traffic grew by nine per cent in the third quarter.
Indiamart, based in Noida, is a B2B marketplace for small, medium and large-sized enterprises that connects buyers to suppliers based on their requirements. Indiamart’s revenue model works on lead generation and it earns no commission on conversion. Irrespective of the conversion that takes place on the platform, Indiamart charges a subscription or a pre-paid fee to the supplier for every lead. In the pre-paid model, the supplier can be listed on the platform for free but he will have to purchase the lead from Indiamart. A lead cost typically is Rs 449 but through this package the supplier can buy a lead for as low as Rs 200.