IndiaMART Acquires 10% Stake in IDfy to Enhance SaaS Offerings

IndiaMART InterMESH Limited (Company) has announced an agreement to acquire 10% of the share capital (on a fully diluted basis) of M/s Baldor Technologies Private Limited (IDfy).

IDfy, operating under the brand IDfy, provides products and solutions for KYC, background verifications, risk mitigation, digital onboarding, and digital privacy. The company is based at its registered office in Mumbai, Maharashtra. For the financial year ending March 31, 2023, IDfy reported a total turnover of ₹117 crore.

The acquired entity, M/s Baldor Technologies Private Limited, operates in the internet-based software solutions industry. This acquisition aligns with IndiaMART InterMESH Limited’s long-term strategy to offer various Software as a Service (SaaS) solutions for businesses. The acquisition is expected to be completed within 30 days.

The nature of the consideration for this acquisition is cash. IndiaMART InterMESH Limited plans to invest a total of ₹89.69 crore to acquire shares from the existing investors of IDfy. This investment includes 100 equity shares, 3,55,019 Compulsory Convertible Preference Shares (convertible into 17,73,495 equity shares), and 2,32,810 Compulsory Convertible Debentures (convertible into 6,95,822 equity shares).

Upon completion, IndiaMART InterMESH Limited will hold a 10% share of IDfy’s total share capital on a fully converted and diluted basis.

Financial Highlights

In the last fiscal year, the consolidated net profit of IndiaMART InterMESH Limited rose 17.69% year-on-year to ₹334 crore, compared to ₹283.8 crore. Consolidated revenue for FY24 reached ₹1,196.8 crore, marking a 21.45% increase from ₹985.4 crore at the end of FY23.

About M/s Baldor Technologies Private Limited

M/s Baldor Technologies Private Limited, known by its brand name IDfy, offers a range of products and solutions focused on KYC, background verifications, risk mitigation, digital onboarding, and digital privacy. Incorporated to cater to these essential areas in digital transactions, IDfy has demonstrated notable growth over the past three years. The company’s turnover increased from ₹38 crore in FY 2021 to ₹57 crore in FY 2022, reaching ₹117 crore in FY 2023. Operating primarily in India, IDfy has established itself as a significant player in the internet-based software solutions industry.

On 30 May 2024, the share price of Indiamart Intermesh Ltd opened at ₹2,509.25, and the day’s high so far is ₹2,516.90 (as of 9:59 AM).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.