IndiaMART To Invest Additional INR 14.3 Cr In Mobisy

SUMMARY

IndiaMART said that it will pick up 100 equity shares and an additional 91,804 CCPS in Mobisy in lieu of the investment

The company said that the fresh investment in Mobisy is in line with its “long term objective of offering various SaaS-based solutions for businesses”

This comes a couple of months after IndiaMART’s stake in the Mobisy increased to 27.21% from 25.08% following conversion of debentures to preference shares

B2B marketplace IndiaMART has said it will acquire an additional stake in Bengaluru-based Mobisy Technologies, which operates SaaS startup Bizom, for INR 14.3 Cr in an all-cash deal.

In a filing with the BSE, IndiaMART said that it will pick up 100 equity shares and an additional 91,804 compulsory convertible preference shares (CCPS) in Mobisy in lieu of the investment. Post the completion of the deal, IndiaMART will now own 31.33% stake in the SaaS startup.

“Consequent to consummation of primary transaction…, 80,000 compulsorily convertible debentures (CCDs) subscribed by the Company (as referred in our earlier intimation dated December 06, 2023) are likely to be converted into approximately 42,697, 0.001% CCPS of the face value of Rs. 1/- each to the company,” said IndiaMART in its filing.

As per the B2B marketplace, the transaction is expected to close within 90 days. In the filing, IndiaMART also said that the fresh investment in Mobisy is in line with its “long term objective of offering various SaaS-based solutions for businesses”.

This comes a couple of months after IndiaMART’s stake in the Bengaluru-based startup increased to 27.21% from 25.08% following conversion of debentures to preference shares. In 2023, IndiaMART had invested INR 8 Cr in Mobisy by subscribing to 80,000 CCD.

Prior to that in January last year, IndiaMART had also pumped nearly INR 15.1 Cr to acquire a 7.96% stake in Mobisy via a secondary share purchase of existing investor securities. In 2020too, Mobisy had issued 1.28 Lakh preference shares to IndiaMART for a cumulative sum of INR 10 Cr.

Founded in 2008 by Lalit Bhise, Bizom offers SaaS-based distribution technology solutions provider for brands and B2B retailers. It allows businesses to digitise end-to-end sales and distribution platforms via its suite of tools.

As per IndiaMART’s BSE filings, Mobisy’s turnover stood at INR 78.6 Cr in the fiscal year 2023-24 (FY24), up from INR 63.9 Cr in FY23. The SaaS platform’s turnover hovered around the INR 44.8 Cr mark in FY22.

Meanwhile, IndiaMART, founded in 1996 by Dinesh and Brijesh Agarwal, operates a marketplace that allows sellers to list on its platform and earns revenue from leads, business enquiries and services offered to its clients.

The B2B marketplace saw its consolidated net profit nearly double year-on-year (YoY) to INR 135.1 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25) from INR 69.4 Cr in the same period last year. Meanwhile, operating revenue grew 18% to INR 347.6 Cr during the quarter under review from INR 294.6 Cr in Q2 FY24.

Shares of IndiaMART closed 0.16% higher at INR 2,346.8 on the BSE on Friday (November 29).

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