Matrimony.com Ltd - Lot of opportunity to grow

Matrimony.com

What is the business ?

Matrimony.com Ltd offers online matchmaking services. It was founded in 1997 by Murugavel Janakiraman, who later met his wife through his own matrimony site. The company has 130 offices in India, with offices in Dubai, Sri Lanka, the United States, and Malaysia to cater to its customers beyond India.

Is business is a niche with low or zero competition like Facebook, Twitter, LinkedIn/ Is there any entry barrier

No business is not niche there are a lot of local and national players are present. There is no entry barrier anyone can make a website, advertise it and you are in the game.

Why this business is worth studying ?

This business is based on network effects like Twitter, Facebook, WhatsApp, Dating Apps. The business grows when more and more people join the platform. In my opinion, any business that has a network effect is worth studying.

Who are the competitor and what is the market share of matrimony

  1. Jeevansathi.com (owned by InfoEdge) - Leading share in North India
  2. Shaadi.com (owned by People group) - Leading share in Gujrat Punjab
  3. Bharatmatrimony.com (owned by Matrimony.com) - Leading share in South India

The marker share of matrimony is 60%

Is the company profitable ?

Yes, Matrimony.com is a profitable company but its peers are not profitable, so this business is not a hunky-dory business where everyone makes money. This business is something where the winner takes it all and the obvious reason for it is network and optimization.

What is the major cost for these companies ?

The major spend of these companies is on the advertisement to attract more and more customer and it will not stop any time soon.

Does this company should deserve valuation like amazon, Facebook, Flipkart?

In my opinion, it doesn’t deserve valuation like amazon, Facebook because customers for matrimony are not repetitive, unlike Amazon, Facebook.

What is the growth opportunity ?

  1. In India 80% of marriages are still arranged so there is a lot of room to grow plus the trend of a nuclear family increasing
  2. Adoption of Digitization
  3. Nowadays Parents ask for their children’s opinion as well unlike in history where parents decide and children will not have any say in their marriage, Nowadays I have seen parents are somewhat ok if their children find partners online.

More on business

The company follows Micro Market Strategy: The company offers a range of targeted products and services that are tailored to meet the requirements of customers based on their linguistic, religious, and community preferences for which it has 17 regional portals and 300+community websites. Matrimony.com also caters to the NRI community through its operations in USA and Dubai.

In 2015, the company ventured into marriage services with Mandap.com which offers one of the largest wedding venue booking platforms with over 10,000 wedding venues and Wedding Bazaar, which is India’s largest wedding planning marketplace offering over 10,000 wedding services providers.

They recently started business in Bangladesh (launched website) and by next quarter they will be able to set up the payment gateway and transactions will start.

Financials

ROC for three years: 20%+

ROE: 15%+

DEBT TO EQUITY: 0.24

SALES GROWTH 5 YEARS: 10%+

PROMOTER HOLDING : 50.2%

Cash on Books : INR 2849 Million

The other business of matrimony is still loss-making so didn’t talk too much about it as they are minuscule

What can be the good valuation for this company ?

The value lies in the eyes of the beholder

I will be researching/gathering more information in the coming days and publishing the article on my app as well Finbloggers.com

Disclaimer : Invested in this stock and will add more based on how the business grows :slight_smile:

15 Likes

Liked your post. What needs to be really understood is, that this is truly a platform. It has got both push and pull working for it. Many standalone generic e-comm or specialized e-comm such as say easytrip, to some extent JD also, command very high valuations. Matrimony is a respected and well-established brand in India. It also owns ~250+ websites (that’s right) that are either possible ventures or customer engagement portals.

Names like Nalanda and MIT are heavily invested in Matrimony. It will definitely command new age kind business valuations, sooner or later.

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Hi, Everyone. Thank you @prabhatg1 for creating this thread, always wanted it for this particular company. I am a relatively new investor with experience of around 1.5 years

In my portfolio, I had bought a portfolio of profitable consumer tech companies like Easemytrip, Saregama, Tips Ind, Infoedge, and Matrimony.com over the past few months. I have profited quite significantly from the former ones except for Matrimony itself. I must confess that I had not researched any of them much but just bought them as they are consumer tech companies. They still are about 25% of my portfolio. I have researched a lot about them all now.

Now, coming to Matrimony. As all other stocks that I bought have gone up quite aggressively except matrimony, it has the smallest allocation in my portfolio. Hence, I have not researched much about it, relative to others. What I want to ask and request is that:

  1. These companies’ profits are supposed to grow very aggressively as their revenue grows as they have very high operating leverage potential. But as shown in the below picture it hasn’t. Why is this?

  2. If someone has any information on shaadi.com, its other competitor whose information is not publically available like Jeevansathi, please share it.

They have acquired a wedding services business and I think that this could be a major source of income for them if they keep doing it in other regions also, as they are cash-rich.

Matrimony.com acquires wedding services player ShaadiSaga.com - The Economic Times.

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Hi @Chaitanya_Motani

As I told, they are aggressively spending on an advertisement to gain market share that could be the reason their profit doesn’t grow very aggressively and in fact, their sales growth also is not too aggressive but when I read the concall their target is to grow at least 18-20% in coming 4-5 years (reason for their acquisition)
Still, they scratched the surface in my opining because currently also in Tier 2, Tier 3 cities finding partner online comes under taboo

Both Shaadi and jeevansathi are loss-making
Few articles on matrimony

1 Like

Thanks a lot.

One positive that I found from the interviews of Infoedge (invested in it also) management is that they are focusing on North India and not aggressive on South India. On the other hand, Matrimony’s management said that they are going to aggressively advertise and acquire companies in North India.

So, Jeevansathi will be on defense while Matrimony will be on offense.

Do you agree?

I would still like to know about the Financials of Shaadi.com. As I read at number of places that till the time it doesn’t become a duopoly, the profitability will not increase significantly. Will try to find out more on Shaadi.com

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Matrimony’s CEO’s interview today.

Key Highlight for me: The wedding services is going to grow in triple digits.

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https://play.google.com/store/apps/collection/cluster?clp=igMuChkKEzYyMjczNjkwMzI4NzQ4OTk5OTAQCBgDEg8KCWpvZGlpLmFwcBABGAMYAQ%3D%3D:S:ANO1ljJ5miw&gsr=CjGKAy4KGQoTNjIyNzM2OTAzMjg3NDg5OTk5MBAIGAMSDwoJam9kaWkuYXBwEAEYAxgB:S:ANO1ljJmFX8&hl=en_US&gl=US

Most of the app rating is around 4. It will be good if it inches towards 4.5 and above. The comment you will see is not encouraging

1 Like