{"id":171340,"date":"2025-09-23T09:23:12","date_gmt":"2025-09-23T13:23:12","guid":{"rendered":"https:\/\/44.250.171.167\/?p=171340"},"modified":"2025-09-23T09:23:12","modified_gmt":"2025-09-23T13:23:12","slug":"indiamart-a-profitable-new-age-anomaly","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indiamart-a-profitable-new-age-anomaly\/","title":{"rendered":"IndiaMART- A Profitable &#038; New Age Anomaly"},"content":{"rendered":"<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Let\u2019s start with a simple question.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>What is a new-age business?<\/strong><br \/>\nWell, It\u2019s a modern, innovative enterprise that thrives on contemporary trends, technology, and business models. They are agile, customer-centric, and scale at a breathtaking pace. Meanwhile, Traditional business are just the opposite.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Here\u2019s a quick hack to spot one: <strong>Speed to a million users.<br \/>\n<\/strong><\/p>\n<p>&nbsp;<\/p>\n<div class=\"group relative\">\n<div class=\"w-full overflow-x-auto md:max-w-[90vw] border-subtlest ring-subtlest divide-subtlest bg-transparent\">\n<table class=\"border-subtler my-[1em] w-full table-auto border-separate border-spacing-0 border-l border-t\" style=\"height: 125px;\" width=\"678\">\n<thead class=\"bg-subtler\">\n<tr>\n<th class=\"border-subtler p-sm break-normal border-b border-r text-left align-top\" style=\"text-align: center;\">Old-Age Businesses<\/th>\n<th class=\"border-subtler p-sm break-normal border-b border-r text-left align-top\" style=\"text-align: center;\">Time to 1 mn users<\/th>\n<th class=\"border-subtler p-sm break-normal border-b border-r text-left align-top\" style=\"text-align: center;\">New-Age Businesses<\/th>\n<th class=\"border-subtler p-sm break-normal border-b border-r text-left align-top\" style=\"text-align: center;\">Time to 1 mn users<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">Coca Cola<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">50 years<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">Facebook<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">10 months<\/td>\n<\/tr>\n<tr>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">Telephone (AT&amp;T)<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">35 years<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">Spotify<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">5 months<\/td>\n<\/tr>\n<tr>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">Ford (Model T)<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">10 years<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\">ChatGPT (OpenAI)<\/td>\n<td class=\"px-sm border-subtler min-w-[48px] break-normal border-b border-r\" style=\"text-align: center;\"><strong>5 days<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"px-two bg-base border-subtler shadow-subtle pointer-coarse:opacity-100 right-xs absolute bottom-0 flex gap-2 rounded-lg border py-px opacity-0 transition-opacity group-hover:opacity-100\">\n<div>\n<div class=\"flex items-center min-w-0 gap-two justify-center\">\n<div class=\"flex shrink-0 items-center justify-center size-3.5\" style=\"text-align: center;\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The pattern is clear. New-age businesses leverage the internet, have online distribution, are asset light, and are highly scalable.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">But there&#8217;s another trait they almost all share: <strong>The Cash Burn.<\/strong><\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">This is where <a href=\"https:\/\/44.250.171.167\/symbol\/indiamart\/\">IndiaMART<\/a> breaks the mold. It possesses a quintessentially old age value: profitability. It doesn&#8217;t burn cash rather it generates it, copiously.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">To put this in perspective:<\/p>\n<ul class=\"marker:text-quiet list-disc\">\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Revenues and Profits have grown at a CAGR of <strong>17% and 29%<\/strong> respectively over the last 5 years.<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">In FY25, it generated <strong>\u20b9623 Crore in Operating Cash Flows.<\/strong><\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">It has virtually <strong>no debt<\/strong> and a balance sheet flush with cash.<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Its shares trade at an attractive <strong>20 times Free Cash Flow.<\/strong><\/p>\n<\/li>\n<\/ul>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Now you see why it&#8217;s an anomaly. IndiaMART has the scalability of a new-age internet business but the financial discipline of a traditional, well-run enterprise.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">So, how did this unique company come to be? The story is inextricably linked to its founder.<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Founder: Dinesh Agarwal, The Accidental Internet Entrepreneur<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><em>\u201cI come from a family of businessmen, but I had no plans of becoming one,\u201d<\/em> says Dinesh Agarwal.<br \/>\nA Computer Science engineer from HBTI Kanpur, his early career involved pioneering work on India&#8217;s first railway reservation system at CMC. A stint at HCL in the US followed, but a pivotal moment came in August 1995 when VSNL launched public internet access in India. Dinesh knew he had to return. He resigned, packed his bags, and came back to become an internet entrepreneur with savings of just \u20b940,000.<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Early Days: Survival and First Milestones<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The late 90s were the dot-com boom. &#8220;<em>Everyone was opening a dot com. And there was a heavy flush of money through venture capital, a game we did not understand,<\/em>\u201d Dinesh recalls.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">While others chased VC money, Dinesh focused on basics. His idea was an online marketplace for exporters and importers. With only 15,000 internet users in India, the challenge was immense. His family, including his mother and wife, helped mail forms to sellers.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The first client was Nirula&#8217;s, for a website development contract of \u20b932,000 per year. By the first year&#8217;s end, IndiaMART had a staff of nine and a turnover of \u20b96 lakh.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The compounding journey of revenue milestones tells its own story:<\/p>\n<ul class=\"marker:text-quiet list-disc\">\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>First \u20b91 Cr:<\/strong> FY2001<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>First \u20b910 Cr:<\/strong> FY2005<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>First \u20b9100 Cr:<\/strong> FY2011<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>First \u20b91,000 Cr:<\/strong> FY2023<\/p>\n<\/li>\n<\/ul>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">A 1000x journey over two decades, a testament to old-fashioned, steady growth.<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Crucible: Surviving the Dot-Com Bust<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">When the dot-com bubble burst, companies worldwide shuttered. \u201c<em>Dot-com became a bad word. And we became untouchables<\/em>,\u201d Dinesh says.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">But here, an old age value shone through: loyalty. Despite the crisis, IndiaMART did not fire a single employee. Remarkably, about 50 of those early employees still work with the company. They cut costs, froze salaries, and focused on their core, reaching 1,000 paying customers by 2001.<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Pivot: From Exports to the Indian B2B Flywheel<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">For the first 13 years, IndiaMART was export-focused. But around 2008-09, Dinesh realized the export story was plateauing. Simultaneously, India&#8217;s internet and smartphone penetration was exploding.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">They made a crucial pivot to the domestic Indian market. This was a masterstroke. The domestic B2B space had a powerful characteristic: the network effect. In a domestic market, every buyer is a potential seller and vice-versa. This creates a powerful, self-reinforcing community.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">They introduced innovations like virtual numbers (call masking) and RFQs (Request for Quotations), bringing transparency to opaque B2B pricing. The flywheel began to spin: more suppliers attracted more buyers, which in turn attracted more suppliers.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171349\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-3-1-1024x563.png\" alt=\"IndiaMart Competitve Strength\" width=\"640\" height=\"352\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-3-1-1024x563.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-3-1-300x165.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-3-1-768x422.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-3-1.png 1416w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Growth Engine: Cracking the Enterprise Code<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Until 2015, large Indian enterprises saw IndiaMART as an SME focused platform. The management decided to change this perception, knowing that large enterprises had a much higher paying capacity.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The result? By 2024, the top-tier Gold and Platinum customers (large enterprises), who were non-existent in 2015, now contribute to ~73% of the revenue and have the fastest-growing Average Revenue Per User (ARPU).<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171348\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-4-1024x496.png\" alt=\"IndiaMart Paid Users\" width=\"640\" height=\"310\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-4-1024x496.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-4-300x145.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-4-768x372.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-4.png 1411w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Business Model: A Classic Two-Sided Marketplace<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">IndiaMART\u2019s model is elegantly simple yet powerful. It connects Buyers with Suppliers.<\/p>\n<ul class=\"marker:text-quiet list-disc\">\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Buyers (200 million registered, 40 million active): They submit RFQs for products they need.<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Suppliers (8 million registered): They respond to these RFQs. The key differentiator is that only ~218,000 (less than 3%) are paid subscribers.<\/p>\n<\/li>\n<\/ul>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Paid subscribers get a significant advantage: a higher quota of RFQs they can respond to daily and weekly. This incentivizes free users to convert as they see the tangible business benefits of a paid membership.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171341\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1024x476.png\" alt=\"IndiaMart Business Model\" width=\"640\" height=\"298\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1024x476.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-300x139.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-768x357.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed.png 1438w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171343\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1-1-1024x563.png\" alt=\"IndiaMart Buyers vs Sellers\" width=\"640\" height=\"352\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1-1-1024x563.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1-1-300x165.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1-1-768x422.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-1-1.png 1168w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171342\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-2-1-1024x550.png\" alt=\"India Mart Business Model\" width=\"640\" height=\"344\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-2-1-1024x550.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-2-1-300x161.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-2-1-768x413.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-2-1.png 1423w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">The Present and The Future: Challenges and Optionalities<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Recently, growth in paid member additions has slowed, a point analysts have focused on. However, the management has a proven track record of navigating such cycles. This short term challenge is also why the stock is available at an attractive valuation.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">But the future holds more than just core growth. IndiaMART has made strategic investments in numerous startups across the B2B value chain from logistics and financing to vertical specific marketplaces.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">These &#8220;optionalities&#8221; are hard to value today but can be game-changers. One only needs to look at Info Edge (<a href=\"https:\/\/www.naukri.com\/\" target=\"_blank\" rel=\"noopener\">Naukri.com<\/a>) and its 1000x return from its investment in Zomato to understand the potential.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171347\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-5-1024x569.png\" alt=\"IndiaMart Investments\" width=\"640\" height=\"356\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-5-1024x569.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-5-300x167.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-5-768x427.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-5.png 1397w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-171346\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-6-1024x505.png\" alt=\"IndiaMart Investment\" width=\"640\" height=\"316\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-6-1024x505.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-6-300x148.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-6-768x378.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-6.png 1382w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<h2 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0\">Conclusion: The First Principles Leader<\/h2>\n<p>&nbsp;<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">When asked about his philosophy, Dinesh Agarwal talks about First Principles. He built the business not by following trends, but by understanding fundamental truths about unit economics, customer value, and knowing when to press the pedal for growth and when to press the brake for profitability.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-171345\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-7.png\" alt=\"IndiaMart Competition\" width=\"672\" height=\"513\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-7.png 672w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-7-300x229.png 300w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-171344\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-8.png\" alt=\"IndiaMart Competitions\" width=\"682\" height=\"605\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-8.png 682w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/unnamed-8-300x266.png 300w\" sizes=\"auto, (max-width: 682px) 100vw, 682px\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"prose text-pretty dark:prose-invert inline leading-relaxed break-words min-w-0 [word-break:break-word] prose-strong:font-medium\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">In a world obsessed with growth at any cost, IndiaMART stands as a rare beacon- a new age platform with the scalability of the internet, powered by the old age, timeless values of profitability, cash flow, and patient compounding. It\u2019s a business that didn\u2019t just survive the dot com bust; it built a lasting empire by sticking to the basics. And that might be its greatest strength.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s start with a simple question. &nbsp; What is a new-age business? Well, It\u2019s a modern, innovative enterprise that thrives on contemporary trends, technology, and business models. They are agile, customer-centric, and scale at a breathtaking pace. Meanwhile, Traditional business are just the opposite. Here\u2019s a quick hack to spot one: Speed to a million [&hellip;]<\/p>\n","protected":false},"author":1863,"featured_media":171350,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,8],"tags":[12227],"class_list":["post-171340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-technology-stocks","tag-platform-company"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IndiaMART-Business-Model-Startuptalky-1-e1758633774444.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":165481,"url":"https:\/\/alphastreet.com\/india\/computer-age-management-services-ltd-q2fy25-44-rise-in-profits\/","url_meta":{"origin":171340,"position":0},"title":"Computer Age Management Services Ltd Q2FY25; 44% rise in Profits","author":"Divyansh_Kasana","date":"November 8, 2024","format":false,"excerpt":"The company is a mutual funds transfer agency. It provides investor services, distributor services and asset management companies (AMC) services. Financial Results: Computer Age Management Services Ltd reported Revenues for Q2FY25 of \u20b9365.00 Crores up from \u20b9275.00 Crore year on year, a rise of 32.73%. Total Expenses for Q2FY25 of\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/JY.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":168389,"url":"https:\/\/alphastreet.com\/india\/computer-age-management-services-ltd-q4fy25-10-rise-in-profits\/","url_meta":{"origin":171340,"position":1},"title":"Computer Age Management Services Ltd Q4FY25; 10% rise in Profits","author":"Divyansh_Kasana","date":"May 15, 2025","format":false,"excerpt":"The company is a mutual funds transfer agency. It provides investor services, distributor services and asset management companies (AMC) services. Financial Results: Computer Age Management Services Ltd reported Revenues for Q4FY25 of \u20b9356.00 Crores up from \u20b9310.00 Crore year on year, a rise of 14.84%. Total Expenses for Q4FY25 of\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/U-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145343,"url":"https:\/\/alphastreet.com\/india\/earnings-computer-age-management-services-limited-nse-cams-q4fy23-results-out-total-income-rises-4-yoy\/","url_meta":{"origin":171340,"position":2},"title":"Earnings | Computer Age Management Services Limited (NSE: CAMS): Q4FY23 Results Out; Total Income rises 4% YoY.","author":"Divyansh_Kasana","date":"May 8, 2023","format":false,"excerpt":"Computer Age Management Services Limited (CAMS) is a leading technology-enabled service provider for the mutual fund industry in India. The company offers a range of services, including transaction processing, investor servicing, and compliance solutions to mutual funds and other financial institutions. CAMS has a pan-India presence with over 278 locations\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/IMG_20230508_164222_390.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":151291,"url":"https:\/\/alphastreet.com\/india\/computer-age-management-services-ltd-q1fy24-18-rise-in-profits\/","url_meta":{"origin":171340,"position":3},"title":"Computer Age Management Services Ltd Q1FY24; 18% rise in Profits.","author":"Divyansh_Kasana","date":"August 4, 2023","format":false,"excerpt":"The company is a mutual funds transfer agency. It provides investor services, distributor services and asset management companies (AMC) services. Financial Results: Computer Age Management Services Ltd reported Revenues for Q1FY24 of \u20b9244.00 Crores up from \u20b9226.00 Crore year on year, a rise of 7.96%. Total Expenses for Q1FY24 of\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-207.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":161258,"url":"https:\/\/alphastreet.com\/india\/computer-age-management-services-ltd-q4fy24-35-rise-in-profits\/","url_meta":{"origin":171340,"position":4},"title":"Computer Age Management Services Ltd Q4FY24; 35% rise in Profits","author":"Divyansh_Kasana","date":"May 16, 2024","format":false,"excerpt":"The company is a mutual funds transfer agency. It provides investor services, distributor services and asset management companies (AMC) services. Financial Results: Computer Age Management Services Ltd reported Revenues for Q4FY24 of \u20b9287.00 Crores up from \u20b9237.00 Crore year on year, a rise of 21.1%. Total Expenses for Q4FY24 of\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/05\/image-127.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":159477,"url":"https:\/\/alphastreet.com\/india\/computer-age-management-services-ltd-q3fy24-20-rise-in-profits\/","url_meta":{"origin":171340,"position":5},"title":"Computer Age Management Services Ltd Q3FY24; 20% rise in Profits","author":"Divyansh_Kasana","date":"March 5, 2024","format":false,"excerpt":"The company is a mutual funds transfer agency. It provides investor services, distributor services and asset management companies (AMC) services. Financial Results: Computer Age Management Services Ltd reported Revenues for Q3FY24 of \u20b9290.00 Crores up from \u20b9244.00 Crore year on year, a rise of 18.85%. Total Expenses for Q3FY24 of\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/03\/image-32.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/171340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1863"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=171340"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/171340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/171350"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=171340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=171340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=171340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}