IndiaMART is ready to launch IPO, it has filed the draft papers with Securities and Exchange Board of India (Sebi). Many startups have started to go the IPO way rather than looking for investors in the early stages. IndiaMART is ready to test Indian capital markets.
It was reported that IndiaMART will be looking to raise around ₹600 crores ($88.24 million) through the IPO. It will be selling up to 4.28 million shares through its IPO. According to the draft prospectus filed with Sebi, the promoters hold more than 55% of the company. The largest institutional stakeholder with 13.47% shares is Intel Capital. The Times Group is also an investor in IndiaMART.
IndiaMART is an e-commerce marketplace that provides a platform for the small, medium and large enterprise to transact along with individual transactions. It has a vast list of product categories for its users to chose from. It was founded in 1996 by Dinesh Agarwal and Brijesh Agarwal, with its headquarter located in Noida. It has more than 3100 employees in over 65 offices all over the country.
In a statement issued by the company, it was informed that Intel Capital will be selling 2.07 million shares, Amadeus IV DPF 1,70,502 shares and Accion Frontier Inclusion Mauritius will sell 4,75,000 shares in the coming IPO. Along with them, the promoters Dinesh Agarwal and Brijesh Agarwal will also be selling 8,52,453 and 5,77, 656 shares respectively.
Alibaba and IndiaMART both cater to the same B2B, B2C and customer to customer transactions in various categories, but Alibaba is way ahead in the game. IndiaMART will have to utilize the funds raised through the IPO to expand its business in a sustainable way.
There are quite a few startups that are using the IPO route to raise money lately since there was a dip in funding during the first quarter of 2018. The previously successful IPOs have given hope to the upcoming startups looking towards IPOs as a funding option. Matrimony.com was amongst those successful startups. SaleBhai is one of the startup looking to raise funds through IPO, they already have in principle approval from BSE.