List Of The Startups Acquired By IndiaMart 2022

List Of The Startups Acquired By IndiaMart

IndiaMART is an e-commerce platform with headquarters in Noida that engages in B2B sales of several goods and services across the nation. It links customers and vendors of all sizes (SMEs, Individual suppliers, large enterprises).

The largest online B2B marketplace in India is called IndiaMART. 80 million items and services, 143 million buyers, 7 million providers, and a 60 percent market share are all claimed by the corporation.

IndiaMART was established in 1996 by Brijesh and Dinesh Agarwal to provide internet directories for consumers in the Delhi-NCR region. The company then received more rounds of funding, which helped it reach unprecedented heights. In 2019, IndiaMART became the first online B2B company to go public.

Since April 2021, IndiaMART has made almost Rs 900 crores in 13 startups. Before 2021, this B2B internet corporation only completed a small number of acquisitions and investments. The list of startups that IndiaMART has so far supported and purchased is available here.

For instance, in the area of accounting, small and medium-sized companies can profit from Vyapaar’s products, while larger companies in need of a multi-location facility can use Real books. The management of HR and payroll is then handled by Zimyo, and billing is handled by M1Xchange.

Even though the majority of these investments are small ones, IndiaMART still has a lot to gain and contribute.

What are the benefits for startups?

In a previous conversation with YourStory in January 2022, EasyEcom founder and CEO Punit Gupta said, “More than the capital, it is the partnership we are delighted about, where we are able to engage with them (IndiaMART) to accelerate our path.

What I find fascinating about IndiaMart is the magnitude, he continued.

In December 2021, IndiaMART made an investment of Rs 13.35 crore for a 26.01 percent share in EasyEcom. The Bengaluru-based startup provides 150 ready-to-use connectors for stock management, warehousing, and order management, as well as omnichannel solutions for e-commerce retailers and sellers.

Entrepreneurs like Punit are eager to share their networks and information with a business that has been operating in the industry since 1996.

The entrepreneurial experience and knowledge that Dinesh, who is advising these firms on product, distribution strategy, and team building, brings to the table is an added plus.

The first several quarters are spent better comprehending the customer profile and pain concerns, according to Dinesh.

He will also offer advice during their monthly or quarterly review meetings based on his knowledge of past sales tactics that were successful and those that were unsuccessful.

With subscriptions accounting for 95% of its revenue, IndiaMART has also established a strong subscription business and may assist in B2B subscription sales.

Startups Acquired by IndiaMART

The list of startups that IndiaMART has purchased over the years is as follows:

• RealBooks

Adansa Solutions Pvt Ltd. created RealBooks, an accounting program. It assists clients with managing their operations across several locations, creating personalized invoices, controlling inventories, bookkeeping, verifying vouchers, and many other tasks. It functions as an all-inclusive set of accounting solutions.

RealBooks is a cloud-based accounting, inventory, and payroll program that complies with GST and VAT. Whether you are a Fortune 500 firm or a small corporation, our extensive feature list and special intelligence tools will ensure greater business efficiency.

RealBooks received a 13.75 crore rupee investment from IndiaMART for a 26.01 percent share. IndiaMART indirectly made this investment through its subsidiary Tradezeal.

• EasyEcom

EasyEcom, a program created by Edgewise Technologies Private Limited, offers retailers options for inventory and warehouse management. Traders can find, monitor, and manage stocks across a variety of sales channels with the aid of this SaaS service.

Additionally, EasyEcom automates back-end tasks like tracking payments for shipment and inventory returns.

IndiaMART invested Rs 13.35 crores in exchange for 26.01 percent of the EasyEcom shares. Through Tradezeal Online Private Limited, this purchase was done.

• Aerchain

Aerchain is a piece of software that aids users in making purchases of products and services. Agillos E-Commerce Private Limited created it. Businesses can streamline their Source-to-Pay (S2P) processes with the aid of Aerchain. Artificial intelligence (AI) automates procurement and identifies the best supplier for prices and quality.

The company was established in 2019 by Harsha Kadimisetty and Himavanth Jasti with the goal of automating procurement by making business commerce as easy as e-commerce, allowing customers to buy the right products from the right suppliers at the right price, and empowering suppliers to find and secure new business opportunities.

For a sum of Rs 26 crores, IndiaMART purchased 26.23 percent of the Aerchain shares. Through Tradezeal, an entirely owned subsidiary of IndiaMART, this investment was made.

• Busy Infotech

Businesses can access Busy Accounting services and products through the infotech software platform. The program also offers capabilities like billing, inventory management, customer management, GST filing, return filing, TDS filing, and TCS filing. BUSY is a simple, user-friendly, and incredibly adaptable application for managing the entire business.

IndiaMART invested a substantial quantity of money of Rs 500 crores to buy Busy Infotech. IndiaMART purchased all of the outstanding shares of Busy Infotech for the indicated price, converting it into a wholly-owned subsidiary of the company.

• Fleetx Technologies

A piece of software called Fleetx aids companies in managing their fleet and freight. This tool digitizes every logistical procedure.

This contributes to the stability, security, and safety of the vehicles as well as the logistics. Through Fleetx, companies and operators can maintain tabs on both the location of their fleet and its maintenance requirements.

IndiaMART paid Rs 91.42 crores to Fleetx Technologies to purchase 16.53 percent of the company’s stock.

• Livekeeping

A business can access, verify, monitor, and exchange data on sales, payments, and other operations by using the accounting tool Livekeeping. Finlite Technologies Private Limited is the company that created this program.

Additionally, Livekeeping’s application can incorporate already available on-use accounting programs like Tally. This provides a real-time view of corporate processes and automatically synchronizes the data on the user’s device.

A significant shareholder in Finlite Technologies Private Limited is IndiaMART. For a total of Rs 45.98 crores, the company acquired 51.09 percent of the outstanding shares in Livekeeping.

• M1xchange

To assist and support MSMEs, the Reserve Bank of India launched the Trade Receivables Discounting System (TReDS). This endeavor served as the foundation for the creation of a platform by M1xchange. To assist MSMEs in obtaining financing through trade receivables, this firm has partnered with a number of institutions.

Micro, Small & Medium-Sized Enterprises (“MSME”) (Suppliers), big Corporates including PSUs and Government Departments (Buyers), and Banks/NBFCs are key participants in TReDS (Financiers).

M1xchange intends to offer cash flow financing for MSMEs’ supply chains at affordable rates through an open bid procedure with a variety of lenders. According to RBI standards, financing via M1xchange is “Without Recourse” to the MSME provider. M1xchange makes use of cutting-edge technology to guarantee the validity of the underlying transactions.

IndiaMART acquired 7.70 percent of the shares in Mynd Solutions Private Limited (M1xchange) in exchange for an investment of Rs 32.43 crores.

• Bizom

A software startup called Bizom creates websites and mobile applications for companies. Their focus is on companies that automate their sales force, supply chain, and distributor management.

Bizom was founded with the straightforward goal of empowering field sales representatives and supply chain workers with the power of technology and data to make smarter, more effective sales.

Nine years later, we are happy to be India’s top Retail Intelligence Platform, serving 500+ enterprise customers across 20+ nations.

IndiaMART made two investments in Bizom totaling Rs 21.4 crores for shares representing 15.98% of the business.

• Industry Buying

The online trading of industrial supplies such as hand tools, abrasives, power tools, robots, etc. is done by Industry Buying. This online store sells equipment from a variety of industries and product categories. IB Monotaro Private Limited launched the brand known as Industry Buying.

IndiaMART invested Rs 104.2 crores to purchase 26% of Industry Buying’s equity.

• Legistify

A SaaS tool called Legistify aids firms in managing and monitoring their legal operations and activities. This internet resource acts as a conduit between individuals or organizations in need of legal assistance and attorneys all around the country. In Legistify, one can manage notices, track litigation, and carry out other related tasks.

Through its subsidiary Tradezeal, IndiaMART acquired Legisify indirectly. Two investments were made: one for Rs 1.30 crores in March 2021 and the other for Rs 7.5 crores in January 2022. 11.30% of Legistify’s total shares are owned by IndiaMART.

• 10 Times

An event management tool called 10 Times connects experts and individuals at the appropriate time and location. Their FLOOR event management software can plan and host virtual events. They handle everything, including recruiting speakers and sponsors, filming the sessions, using AI to strengthen the network, and much more.

Previously, IndiaMART owned 100 p of 10 Times. However, IndiaMART sold 70% of its holdings 10 Times in 2020 and currently only owns 30% of the business’s share capital as an associate company.

• Vyapar

Another accounting program that receives funding from IndiaMART is Vyapar. It assists small businesses with invoicing, vouchers, and inventory control by providing streamlined accounting solutions. These procedures are made simple, quick, and easy with Vyapar.

2019 saw an earlier investment from IndiaMART of Rs 31.2 crores in Vyapar. The corporation has now invested another Rs 61.55 crores in this accounting startup in order to grow the business. IndiaMART owns a combined 27 percent of the shares in Vyapar.

• Shipway Technology

Another logistical SaaS tool designed to help small firms manage shipping processes is called Shipway. In terms of tracking, return management, fraud detection, etc., it provides a better customer experience. Shipway also automatically sends a delivery notification and ensures better workflow management.

On April 28, 2021, IndiaMART made an Rs 18.2 crore investment in Shipway Technology through its subsidiary Tradezeal.

• Super Procure

Super Procure digitizes every stage of the shipping process, from order placement to delivery. It uses an open auction or bidding process to identify the best freight provider with the best pricing.

A real-time view of each and every event occurring during the shipping operation is provided by Super Procure. Truckhall Private Limited designed and oversees the operation of this software.

IndiaMART made an indirect investment in Super Procure worth Rs 10.4 crores. A total of 25.02 percent of the shares of Truckhall Private Limited are owned by the corporation.

• Zimyo

Software for managing human resources is called Zimyo, and it was created by Zimyo Consulting Private Limited. This SaaS platform takes care of everything, including managing payroll, performance, and attendance as well as hiring new hires.

IndiaMART contributed Rs. 17.01 crores in exchange for 10% of Zimyo’s share capital.

• Tradezeal

A business software firm called Tradezeal Online Pvt Ltd. was established in May 2005. Its registered office is located in the heart of Delhi. Customers of Tradezeal can take advantage of consultation and other software publishing services.

An entirely owned subsidiary of IndiaMART is this business. Through Tradezeal, IndiaMART made a few acquisitions and investments that were done so indirectly.

• Tolexo

Another wholly-owned subsidiary of IndiaMART is Tolexo. It is a platform that offers technology, financial services, customer support, and other necessities for a hassle-free online buying experience for businesses.

This business asserts that it has been creating a cutting-edge infrastructure by fusing online and offline systems to provide the ideal e-commerce solution.

• HelloTrade

An online trade business called Hello Trade has been around for 14 years. The parent firm of Hello Trade is IndiaMART. Dinesh and Brijesh, the company’s founders, are board members of this organization. The registered office of Hello Trade Online Pvt Ltd., a company limited by shares, is in Delhi.

• Pay With Indiamart

A provider of online payment services is Pay With Indiamart. Along with services like buy-now-pay-later, EMIs, and many payment alternatives, it provides its clients with a safe and secure platform for payments.

Through this online service, payments can be made for purchases and sales conducted through IndiaMART. A division of IndiaMART, Pay With Indiamart is a private limited corporation.

Why would IndiaMART benefit?

The money it raised in February 2021 has already been used in a substantial proportion. Dinesh replies, “We will see if we can make one or two more investments” with the remaining money.

These are both financial and strategic investments for the business.

Every minority investment must, he continues, “first and foremost, have a strong return financially over a period of five to ten years.”

The acquisitions made by IndiaMART reflect a distinct vision. The anonymous i-banker believes that while return on investments may pay off in the long run, the immediate benefit is the stickiness it can offer its client base, who is the target market for the businesses it is investing in.

With more than 63 million registered MSMEs and more than 12 million GST-registered businesses in the nation as of August 2021, IndiaMART offers a large market opportunity.

In turn, these investments are consistent with IndiaMART’s long-term goal of offering a comprehensive environment for all business requirements. This calls for a cooperative and integrated ecosystem involving, among other things, logistic firms, payroll, attendance, and HR management modules.

The larger goal is to provide sellers with a package of services that includes basic operations like distribution management, tax compliance, accounting, invoicing, receivables management, and inventory management.

At the same time, we want to give them the tools they need to run a better IndiaMART store with better SKUs, adds Dinesh.

According to the i-banker, the wider startup ecosystem is continually developing, and the startups in IndiaMART’s portfolio might serve as a form of the arsenal for the company to future-proof its operations and establish a stronger moat.

IndiaMART – Issues

IndiaMart, a pioneering Indian B2B e-commerce enterprise, has faced many difficulties since its founding in 1996. IndiaMart had its share of difficulties, including locating customers, raising awareness online, and obtaining listings for them so they could build a solid online reputation.

Emails weren’t very common when IndiaMart was founded, so they had to print out the queries and fax them. IndiaMart encountered even another obstacle after the 9/11 attacks, as their exports were severely curtailed, bringing down the income along with them.

Indiamart too experienced the effects of 2012’s economic slowdown in India.

The United States Trade Representative (USTR) recently listed IndiaMart as one of the most infamous markets. 42 online and 35 physical markets were included in the Notorious Market List of 2021, and according to USTR, each of these markets engages in a trademark infringement or copyright piracy.

The prominent Indian eCommerce site has come under fire from the US Trade Representative report for being the source of fake clothing, gadgets, and pharmaceuticals.

Conclusion

After acquiring a capital of Rs 1070 crores in 2021, IndiaMART was evidently confident about investing in startups as seen by the more than a dozen investments made in less than a year.

From the beginning, they made a variety of investments in various business sectors, including supply chain, logistics, automation, and accounting. All of IndiaMART’s acquisitions will undoubtedly be advantageous for both the company and the corresponding startups.