Info Edge?s online recruitment portal ?Naukri? is a dominant leader in the online job market with c.68% of traffic share. The online market is expected to be around 25% of the total recruitment market and is estimated to grow at c.20% from FY14-17E.
Naukri follows a subscription-based model with 90% of revenues coming from recruiters (B2B) and 10% from job seekers (B2C). The recruiters pay for 1) resume database access; 2) job listing; 3) employers visibility and 4) advertising. The IT & ITES sector contributes to 27% of the total revenues.
Naukri vs LinkedIn in India
While LinkedIn has being gaining traction in India offlate, we note that the website is used more for networking and less for seeking
jobs. Besides, most hires that happen from Naukri are below 10 years of work experience vs. LinkedIn which is being used by senior executives for recruitment
We expect Naukri?s revenue outlook to improve in coming years led by an improving GDP growth rate (in-line with our economist forecasts) and estimate Naukri?s FY15-18E revenue CAGR to be 19% (vs FY12-15 revenue CAGR of 13%).
