A very well written substack to understand the business, and the moat
https://anjalirochiramani.substack.com/p/indiamart-aur-kya-or-what
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Have observed that they are taking market away from Justdial. Although the business model of both are not same, it is quite similar. Both helps businesses in visibility, sales, and lead management.
As per share holding pattern for the QE Mar 2026, Nalanda India Equity Fund is holding 5.64 % Equity of Indiamart acquired in the quarter around Rs 2000/- per share. As per their buying philosophy, they acquire high quality business at a reasonable price.
Optically, the EPS number looks to have recovered, and there is some growth in sales yoy, but the issue with high churn in silver category, and poor retention rate during first 12 months continues to trouble this firm. Again this time, they have admitted that they are trying to fix the leak, and experimenting to find a solution with a resolve to not let CAC blow up. Demand side enquiries are again flattish - so no bright ray of hope to speak of and hence this reaction in price. I wonder if this counter will find a floor price.
As for management intent - they are sticking to their goal they have set - no superficial growth at the expense of margins, even though it’s been causing the stock price to bleed for several quarters now. I can’t distinguish between - “tunnel vision” vs “rigidity” at this point. I would urge smarter people to opine here. Would you support this approach or condemn it? Price action has a very clear call
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There is news about incorporation of a new company called Indiamart Finance, that will route the loans etc to banks/NBFC.
Is this old news?
Company has announced setting of this subsidiary in the QE June 26 results.
As per the latest shareholding pattern Nalanda India Fund has acquired 1.9 % of the equity in the QE June 26 .Total share holding now is 7.54% from 5.64 % in the QE Mar 26.
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TLDR;
IndiaMART is suing OpenAI because ChatGPT is making it invisible.
When people now ask ChatGPT for a supplier, the AI skips IndiaMART and sends buyers straight to sellers’ own websites (or to rivals like TradeIndia). Suppliers who used to get several calls a day now get one or two. Many don’t understand why business dried up — they’ve never heard of ChatGPT.
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Someone has already shared this article in this chain earlier
And, honestly, what is there to contest here? As technology changes, these risks will keep coming up. Maybe Indiamart needs to work on offering a suit of services which pulll the customers to them, and that truly distinguishes their services from a normal google search.
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