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IndiaMART acquires 10% stake in IDfy for Rs 89.7 crore

Mergers and acquisitions

B2B market leader IndiaMART has acquired a 10% minority stake in identity verification platform IDfy for Rs 89.7 crore. The acquisition, detailed in a recent regulatory filing, marks IndiaMART’s continued expansion into business-focused software-as-a-service (SaaS) solutions.

IndiaMART acquired 24.69 lakh equity shares of IDfy, primarily through Mandatory Convertible Debentures and Mandatory Convertible Preference Shares. IDfy, operated by Baldor Technologies Private Limited, is known for its integrated identity platform that offers a range of identity products including KYC, background verification, risk mitigation, digital onboarding and digital privacy services.

Commenting on the acquisition, Dinesh Agarwal, Founder and Managing Director, IndiaMART said, «IDfy’s expertise in background verification and authentication aligns seamlessly with IndiaMART’s mission to empower businesses digitally.»

IDfy reported a total turnover of Rs 117 crore for the financial year ending March 31, 2023, a significant increase from Rs 57 crore reported in the previous fiscal. This growth underscores the platform’s robust capabilities and market demand for its services.

The acquisition is part of IndiaMART’s broader strategy to invest in technology-driven startups that complement its core offering. The company has previously invested in various startups including Zimyo, Realbooks, IMPL, Fleetx Technologies, Busy Infotech, Simply Vyapar, Legistify, EasyEcom and M1Xchange.

For financial year 2024, IndiaMART reported 21% year-on-year growth in consolidated operating revenue to Rs 1,197 crore. During the same period, the company earned a net profit of Rs 334 crore, according to the company.

Despite the positive rally, shares of IndiaMART closed 2.56% lower at Rs 2,445 apiece in late trading today on the NSE.

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