Indiamart to raise Rs 100Cr via PE route
2011-01-25Indiamart Intermesh Limited, which owns Indiamart.com, a B2B marketplace, is on the road to raise close to Rs 100 crores or $20 million from private equity investors, sources close to the development told VCCircle. The internet company, which was founded in 1998, is understood to have received interest from several investors including Bessemer Venture Partners and Warburg Pincus, sources add.
Dinesh Aggarwal, Founder, Indiamart.com, declined to comment on the development. This will not be the first time that the company will raise institutional capital. In 2008, it raised $10.8million for a 14% stake from Intel Capital India Technology Fund and $3.4 million for about 5% stake from Brand Equity Treaty Ltd (Times Private Treaties) in 2007.
The company, which connects Indian suppliers to global buyers, claims that it helps generate $1-billion worth of B2B sales annually for its members. It generates 500,000 business enquiries for its members every month, showcases over 15,000 catalogs and 700,000 products, features over 300,000 suppliers in 20,000 product categories and has 32 offices across India. Essentially, it acts an "aggregator" that serves as a go-between. The Indiamart platform comprises of online B2B marketplace Indiamart.com, Indiamart Sourcing guides, international trade shows and promotion on internet.
Generally, access to Indiamart's portals comes free of charge. But users also can sign up for "premium" content. The company wants to be known more as a complete B2B media than a marketplace for SMEs (Small and Medium Enterprises) in India.
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