Hailing from Napara district in Uttar Pradesh, Dinesh Agarwal embarked on an unconventional journey. He secured a position as a systems analyst at HCL in the USA in 1992. After diligently working for three years, a pivotal announcement altered his trajectory.
On August 15, 1995, Prime Minister PV Narasimha Rao disclosed plans for BSNL to introduce internet connectivity in India. Having experienced the internet’s potential in the USA, Dinesh recognized the monumental opportunity. Subsequently, he relinquished his lucrative job and resettled in a modest apartment in East Delhi.
Recognizing the potential for small enterprises to thrive amidst the internet revolution, Dinesh envisioned a solution. However, many lacked the necessary infrastructure to establish an online presence. Consequently, with Rs 40,000 in savings and a team of four employees in 1996, Dinesh founded Indiamart.
Dinesh initiated a strategic move by dispatching 1000 stamped and sealed envelopes to solicit business details across various sectors, including garments, handicrafts, spices, gems, and jewelry. This innovative approach yielded favorable results.
Despite encountering skepticism, Dinesh received responses from 2% of the recipients, which he promptly listed on Indiamart. Securing his inaugural client, the renowned ice cream manufacturer Nirula, for whom he developed a website for Rs 32,000, marked a significant milestone. Within the inaugural year, Dinesh successfully onboarded 100 clients and achieved a revenue of Rs 6 lakh.
By 1999, Indiamart had amassed a database of 70,000 businesses and catered to 1000 clients. Its geographical footprint expanded with the establishment of a second office in Mumbai, facilitating free listings and venturing into foreign markets. Despite navigating through the dotcom crash, Indiamart managed to generate profits amounting to Rs 6 lakh. However, adversity struck with the aftermath of the 9/11 terrorist attacks, resulting in a 40% revenue loss.
Responding to the market upheaval, Dinesh executed a strategic pivot, transitioning from exports to a domestic B2B marketplace model. Securing a funding of 45 CR led by Intel Capital, Indiamart underwent a transformative phase.
Indiamart rebounded from its initial setback in 2012, scaling up to 1 crore business listings, 15 lakh suppliers, and a turnover of 200 CR by 2013. With an impressive 65% market share facilitated by over 300 trade shows, it set a new benchmark by establishing 52 offices in as many weeks. In 2016, a funding round of 150 CR led by Westbridge and Amadeus Capital further propelled its growth trajectory.
Continuously diversifying its portfolio with ventures like Tolexo (B2B Commerce), Tentimes (Event discovery), and Hello Travel (Travel commerce), Indiamart sustained its commitment to offering free listings for buyers while monetizing seller quotes through subscriptions. By March 2019, its revenue doubled to 410 CR, with an operating profit of 46 CR.
The culmination of Indiamart’s journey arrived on June 24, 2019, with its successful IPO, raising 450 CR from the market. Oversubscribed by 36 times, it emerged as the second most successful IPO of 2019.
Presently, Indiamart commands a valuation of 15,000 CR, boasting a network of 7.4 million suppliers and 90 million listings, capturing a commanding 60% market share.
Dinesh Agarwal’s leadership ethos underscores a commitment to employee welfare, evident in his policy of never resorting to layoffs and ensuring salary disbursements during challenging periods. This principled approach has solidified his position at the helm of India’s largest profitable B2B commerce company.
