Dinesh Agarwal and Brijesh Agrawal ("DA & BA") established IndiaMART with around US$1100 savings in 1996. The revenue for the year ending March 2014 reached a level of US$ 32 million. The company offers a platform and tools to more than 1.5 million vendors to generate business guide from over 10 million buyers…(It) has over 2600 employees found across 40+ offices all over the nation". The company appraises various capital raising actions from time to time, including public or private placement opportunities in keeping with the company's growth strategies.
Variables that would help the business’s valuation maintain a powerful reputation for year-on-year growth, a sustainable revenue basis from diversified merchandise groups, a powerful, enormous, and active user base, and also a sound conversion rate of buyer- leads to revenue dollars for its providers. The disadvantage, though, is that the business has not been generating operational gains for five years since 2010. From scratch DA & BA to US$32 million revenue, have led the company's many evolutions; what are the important concerns in constructing the current business model? How do they ensure the growth of powerful networks in every merchandise category of the multiple-sided platform? One criticism of IndiaMART's weakness is simple replicability - What is the creators' response in mitigating dangers presented via this achilles heel? What must be done by IndiaMART to attract fair valuation?
PUBLICATION DATE: October 13, 2015 PRODUCT #: HK1071-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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