**India:** IndiaMART InterMESH reported a 13% rise in Q4 revenue to ₹355 crore and an 81% net profit increase to ₹181 crore, driven by higher ARPU from top paying customers. The company invests in AI and communication tools while addressing retention challenges in smaller supplier segments.
IndiaMART’s Impressive Growth Momentum: A Focus on Platinum Customers
In a testament to its robust business model, IndiaMART InterMESH recently reported a remarkable 13% year-on-year increase in consolidated revenue, reaching ₹355 crore for the quarter ending March 31, 2025. This surge in revenue is complemented by an astounding 81% leap in net profit, which surged to ₹181 crore, and a consolidated EBITDA margin of 37%, amounting to ₹131 crore. The company’s CEO, Dinesh Aggarwal, highlighted that the primary driver behind this performance has been the growth in Average Revenue Per User (ARPU), predominantly from the top 25% of its paying customers, referred to as ‘platinum customers.’
Aggarwal attributes the company’s success not just to an increase in numbers but also to strategic pricing initiatives and a refined product-market fit. “The differential pricing — industry-based pricing — we started implementing about two years ago has resonated well with both the industry and our sales team, thereby aiding our sales efforts,” he explained. Such measures have evidently positioned IndiaMART favourably in a competitive landscape, allowing the company to enhance its margins even as it invests heavily in technology and business enablement.
Despite the promising growth figures, challenges remain, particularly in improving first-year retention rates among new suppliers, especially those in the silver categories. The churn rate for these suppliers has been a persistent hurdle, as many struggle to adapt to the digital marketplace. Aggarwal noted, “We’ve been trying to tweak our product-market fit to see what works for micro and small businesses coming online for the first time.” He expressed optimism about addressing these challenges in the upcoming quarters, aiming to create more compelling offerings that cater to the unique needs of these businesses.
The company is also venturing into technological innovations, particularly in the realm of digitalisation for micro and small enterprises. With the proliferation of artificial intelligence, IndiaMART is exploring how AI can facilitate better product categorisation, making it easier for businesses to feature their offerings accurately. “We work with almost one lakh different keywords and industry products, and ensuring these products are correctly classified will enhance the efficiency of our marketplace search engine,” Aggarwal highlighted.
In addition to improving engagement through AI, IndiaMART is adapting to contemporary communication preferences, utilising WhatsApp Business accounts to streamline interactions between suppliers and buyers. This modern approach is seen as essential in refining customer experience and building lasting relationships.
Financially, IndiaMART’s position remains strong, with approximately ₹2,900 crore in cash reserves. The company generated about ₹623 crore in cash flow from operations last year. This enables it to explore new investment opportunities while maintaining a healthy dividend policy. Recently, the board approved a dividend distribution amounting to ₹300 crore, signifying a commitment to shareholder returns alongside ongoing investments in B2B technology and other ventures.
Looking forward, IndiaMART aims to focus significantly on B2B and technology sectors, with plans to double down on existing investments and actively seek new opportunities that align with its strategic vision. The goal is not only to sustain growth but also to ensure that improvements in metrics such as net customer additions and retention rates become more pronounced in the future.
As IndiaMART navigates these complexities, its ability to balance investment and shareholder returns will be crucial in maintaining its growth trajectory, particularly as it seeks to further penetrate the micro and small business sectors with innovative solutions.
Reference Map:
- Paragraph 1 – [[1]](https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/platinum-customers-are-driving-our-growth-indiamarts-dinesh-aggarwal/120965233), [[2]](https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/platinum-customers-are-driving-our-growth-indiamarts-dinesh-aggarwal/120965233), [[3]](https://www.moneycontrol.com/news/business/companies/indiamart-intermesh-reports-13-yoy-growth-in-revenue-to-rs-355-crore-in-q4-fy2025-2025-05-07-2025-05-07.html)
- Paragraph 2 – [[1]](https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/platinum-customers-are-driving-our-growth-indiamarts-dinesh-aggarwal/120965233), [[4]](https://www.business-standard.com/article/companies/indiamart-intermesh-reports-13-revenue-growth-in-q4-fy2025-120050700019_1.html), [[5]](https://www.financialexpress.com/industry/indiamart-intermesh-reports-13-revenue-growth-in-q4-fy2025/2025-05-07/2025-05-07.html)
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- Paragraph 6 – [[1]](https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/platinum-customers-are-driving-our-growth-indiamarts-dinesh-aggarwal/120965233), [[2]](https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/platinum-customers-are-driving-our-growth-indiamarts-dinesh-aggarwal/120965233)
Source: Noah Wire Services
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