IndiaMART is one of India’s biggest e-commerce platforms. It connects suppliers with buyers and has been very successful, but its journey was not easy.
The company was founded in 1996 by Dinesh Agarwal and Brijesh Agarwal, when the internet was not widely used in India.
Despite many challenges, it grew into the largest B2B (Business-to-business) e-commerce platform in India.
IndiaMART – Company Highlights
- Company Name – IndiaMART
- Headquarters – Noida (Uttar Pradesh)
- Founders – Dinesh Agarwal & Brijesh Agarwal
- Industry – E-commerce
- Founded – 1996
- Total Funding – $40.8 mn (January 2022)
- Revenue – $98.40 mn (Rs 753 cr in FY22)
- Parent Organization – IndiaMART InterMESH Limited
- Website – www.indiamart.com
Early Days of IndiaMART
In 1996, Dinesh Agarwal, a software engineer, and his cousin Brijesh Agarwal, decided to start a business. They saw the potential of the internet and wanted to use it to help businesses grow.
But at that time, very few businesses knew how to use the internet. So, Dinesh and Brijesh began by creating a platform where businesses could list their products online. They started with only Rs 40,000 and worked from a small flat in Delhi.
At first, it was hard to convince businesses to use the internet. Most companies did not even have email addresses.
Dinesh and Brijesh had to send printouts of business queries via fax. Their first big client was Nirula’s, a well-known food chain in North India. This was an important milestone for it.
Overcoming Challenges
In the early years, it faced many challenges. The internet was slow, and not many businesses knew about it.
The founders had to educate businesses on how the internet could help them grow. They also participated in trade fairs to spread awareness.
Its first step was to offer free listings to businesses. When these businesses saw the value, they started paying for the service.
By 1999, it had about 1,000 clients. But then, the 9/11 attacks happened, which hurt India’s exports and affected its revenue by 40%. Despite this setback, the founders did not give up.
Growth and Expansion
A turning point for this came when it shifted its focus from international to domestic businesses. The platform began to serve businesses in India, which helped it grow rapidly.
Today, it has over 6 million suppliers and millions of buyers. It has become a leader in B2B e-commerce, with partnerships with well-known brands like Tata, Airtel, and Bosch.
The company expanded by acquiring other businesses. For example, it acquired Tolexo, an online platform, in 2014, but later closed its retail wing.
It also launched subsidiaries like Pay With IndiaMART, a payment gateway for businesses.
Business Model
It works on a subscription-based model. Businesses pay to list their products and gain more visibility. Buyers can browse the platform for free.
It also makes money by selling advertising space and offering payment services. This business model has helped the company grow and expand over the years.
Founders and Team
Dinesh Agarwal grew up in Uttar Pradesh and studied Computer Science. He worked in various companies before moving to the US for a job at HCL Technologies.
However, he realized that he wanted to start his own business, so he returned to India in 1996 to create IndiaMART.
Brijesh Agarwal, Dinesh’s cousin, completed his studies in business management and joined this to help run the company.
Together, they built the company from the ground up. As of 2021, IndiaMART had nearly 3,000 employees working across India.
IndiaMART’s Mission and Vision
Its mission is “to make doing business easy.” The company aims to help businesses grow by connecting them with suppliers and buyers. Their vision is to remain the leader in B2B e-commerce in India.
Growth and Success
It has grown significantly since its founding. It has over 143 million registered buyers and 6.4 million suppliers.
The platform hosts more than 71 million products and services. With a 60% market share in India, it is the largest online B2B marketplace in the country.
It has expanded quickly by opening 52 offices in just one year, which helped increase sales by 10 times. The company also pays its employees weekly, which is a unique way to support them.
Challenges Faced
It faced many challenges during its growth. One major issue was educating businesses about the internet and how it could help them. In the beginning, most businesses did not even have email addresses.
They also had to deal with the economic slowdown in 2012 and the impact of the 9/11 attacks on global trade.
In addition, it faced criticism in 2021 when it was included in the United States Trade Representative’s list of notorious markets for counterfeit goods.
This hurt the company’s reputation, but it continues to grow and adapt.
Acquisitions and Growth
It has acquired several companies to expand its services. In 2022, it acquired Busy Infotech, an accounting platform, for Rs 500 crore. It also bought a stake in IB Monotaro, a Japanese company that supplies industrial products in India.
IndiaMART’s Awards
Over the years, it has received many awards for its work in e-commerce. The company’s growth and success are a testament to its hard work and vision.
Here are some of the important awards:
- Red Herring 100 Asia Awards 2008: Recognized as one of the top 100 companies in Asia.
- Manthan Award 2013: Awarded for excellence in e-business and financial inclusion in South Asia and Asia Pacific.
- Special Contribution Award 2016: Given at the WASME – Super SME Awards for its contribution to small and medium enterprises.
- Best Online Classified Website Award 2016: Recognized at the Drivers of Digital Awards.
- Best Business App Awards 2017 & 2018: IndiaMART’s app won awards for being the best business app at GMASA 2017 and Drivers of Digital Summit & Awards 2018.
- Best Online Classified Application 2018: Awarded at the Drivers of Digital Summit & Awards.
- Video Content Award 2019: IndiaMART received special mention for video content on its business website at the Video Media Awards and Summit.
- India Law Awards 2019: Recognized for its legal team in the Technology, Media, and Telecommunications category.
- Most Promising Company of the Year: Awarded by CNBC Awaaz CEO Awards.
- Best Video Content in a B2B Marketing Campaign Award 2020: IndiaMART’s campaign ‘Bada Aasaan Hai’ won this award at the Video Media Awards & Summit.
Final Words
Its journey shows that with determination and innovation, businesses can succeed even in difficult times.
From a small startup in 1996 to becoming the largest B2B platform in India, it has overcome many challenges. It continues to grow and help businesses thrive in the digital world.
IndiaMART FAQs
What is IndiaMART?
IndiaMART is one of the largest e-commerce platforms in India. It connects businesses with suppliers and buyers.
Who started IndiaMART?
IndiaMART was started in 1996 by Dinesh Agarwal and Brijesh Agarwal.
What was the biggest challenge in the early days of IndiaMART?
In the beginning, most businesses didn’t know how to use the internet, which made it hard to get them to join IndiaMART.
How did IndiaMART grow?
IndiaMART grew by helping businesses use the internet to sell products and offering free listings at first. It also shifted focus to serve Indian businesses.
How does IndiaMART make money?
It makes money through a subscription model, where businesses pay to list products. It also earns by selling advertising space and providing payment services.
What is IndiaMART’s mission?
Its mission is to make doing business easy by connecting suppliers and buyers.
How many suppliers and buyers does IndiaMART have?
It has over 6 million suppliers and more than 143 million registered buyers.
Has IndiaMART faced any problems?
Yes, it faced challenges like slow internet in the early days and economic problems, such as the 9/11 attacks and the 2012 slowdown.
What is IndiaMART’s business model?
It works on a subscription-based model. Businesses pay to list their products, while buyers can browse the platform for free.
What awards has IndiaMART won?
It has won several awards, including the Red Herring 100 Asia Award in 2008 and the Best Online Classified Website Award in 2016.
