IndiaMART looks to protect revenues and customers in FY21

B2B e-commerce company IndiaMART is looking at protecting current revenues and customers in the coming year. The company’s average revenue per user has already been “substantially” hit and collections to have come down to “near zero” for at least two months, since the lockdown began.

Collection growth, which stood at 32 per cent in FY18/FY19; came down to 10 per cent in FY20 (₹738 crore) indicating the economic stress on micro, small and medium businesses (MSMEs). For IndiaMART, maintaining similar numbers “will be a miracle” in FY21, with uncertainty around Covid-19 looming large.

According to Dinesh Agarwal, MD and CEO, IndiaMART InterMesh Ltd, its e-commerce platform is not adding any new customers especially because of the lockdown. Moreover, the very few who are coming, are primarily for particular product categories. This in turn will impact subscriber base.