For IndiaMart.Com, the top 10% paying suppliers out of the 133,000 total subscriptions accounted for 43% of the total revenues. To ensure customer retention, the company continues to offer discounts ranging between 5-10% to few customers while extending the subscription plans for a month or two for few others. ARPU’s are likely to be under pressure in the near term.
Management said that cash collections were down to just ~30% of monthly pre-lockdown (INR 600-650mn) in April but now were up to ~65% of pre-lockdown levels (~INR 400mn). In July, management expects to be at least at the same levels as of June (if not better).
Traffic Pointers
The Company indicated that while one third of the traffic from pandemic affected industries such as hospitality, fashion, automobile etc. has severely been impacted, another one-third of the traffic from industries such as essential goods & services (sanitation, safety, healthcare and food etc.) had been extremely strong, especially in the months of May and June. The remaining one-third traffic from other industries has been stable. At present buyer traffic on a weekly basis presently is at all time high. Overall, the company expects strong buyer traffic trends may lead to incremental suppliers joining its platform.
