Archive · 27 Jul 2026
Veteran Investor Increases Stake in IndiaMART Amid Growth Concerns
Pulak Prasad, a well-known investor, has been buying shares of IndiaMART, India's largest online marketplace for businesses.
He now owns 7.71% of the company.
While the market is worried about slower growth in the number of paying suppliers, Prasad sees value in IndiaMART's strong profits, cash flow, and ability to keep customers.
The company is also expanding into new areas like accounting software and financing solutions.
Despite concerns about AI changing how businesses find suppliers, IndiaMART is using AI to improve its services.
The company has a strong balance sheet with no debt and high returns on investment.
Prasad's investment suggests he believes in IndiaMART's long-term potential, even if the market is focused on short-term slowdowns.
Pulak Prasad's Nalanda India Equity Fund increased its stake in IndiaMART to 7.71% by July 2026.
IndiaMART's subscriber growth has slowed, particularly among Silver subscribers, raising market concerns.
The company's revenue grew 11% YoY in Q1 FY27, with an EBITDA margin of 35% and strong cash flow.
IndiaMART is expanding into adjacent businesses like accounting software and financing solutions.
Management believes AI can enhance the platform's value rather than disrupt it.
- Who
- Pulak Prasad, veteran investor and manager of Nalanda India Equity Fund
- What
- Increased stake in IndiaMART Intermesh to 7.71%
- When
- Between January 2026 and July 2026
- Where
- India
- Why
- Believes in the company's resilient business model and strong financials despite market concerns over slower growth
Market Concerns
Investor Optimism
Subscriber Growth
Market Concerns
The market is worried about the slowdown in subscriber additions, particularly among Silver subscribers, which indicates potential long-term growth issues.
Investor Optimism
Investors like Pulak Prasad see value in the company's resilient business model and strong financials, suggesting the slowdown may be temporary.
AI Impact
Market Concerns
The market is concerned that AI could disrupt the traditional marketplace model, potentially reducing the need for platforms like IndiaMART.
Investor Optimism
Management believes AI can be leveraged to improve the platform's offerings, such as better supplier verification and customer support, enhancing the platform's value.
- Company
- IndiaMART Intermesh
- Founded
- 1996
- CEO
- Dinesh Agarwal
- Market Cap
- Approx. ₹40,000 crore
- Revenue Growth (Q1 FY27)
- 11% YoY
- EBITDA Margin
- 35%
- ROE
- 20.7%
- ROCE
- 28%