Indiamart Intermesh has entered into an agreement to buy 100% stake in accounting software company Busy Infotech Pvt Ltd for Rs 500 crore, the company said in a statement on Tuesday.
In addition, Indiamart said that it will be increasing its stake in accounting and inventory workflow product SimplyVyapar Apps Pvt Ltd while also acquiring a stake in legal workflow app Legistify.
Busy Infotech through its product ‘BUSY Accounting Software’ or ‘BUSY’ offers web based business accounting solution for the companies. The solution also offers GST billing & return filing, TDS/TCS, configurable GST compliant invoicing, inventory management. The solution is offered in three variants namely Basic, Standard, and Enterprise Edition
“Thousands of Indian businesses rely on Busy for their accounting needs, and their value proposition fits in well with Indiamart’s long-term objective of making doing-business easy for Indian businesses.This acquisition further augments Indiamart’s value proposition…”, said Dinesh Agarwal, Founder and Managing Director of Indiamart.
Busy clocked revenues of Rs 44 crore for 2020-21 (FY21) and a profit of Rs 11 crore, the firm said.
Indiamart said it also will be making an investment in Legistify, a software-as-a-service (SaaS) tool, which enables businesses to manage their legal workflows, indirectly through its wholly-owned subsidiary Tradezeal. As a part of the transaction, Tradezeal has agreed to buy 75,000, 0.0001% Compulsorily Convertible Debentures (‘CCDs’) in Legistify.
Indiamart Intermesh’s recent acquisition announcements follow the company’s December quarter results, where it logged a net profit decline of 12% from a year earlier. The company reported a rise in its revenue from operations but its operating costs surged during the period, hitting its net and operating profits.
Company also said that number of registered buyers on its e-commerce platform rose 20% in the December quarter from a year earlier to 143 million and claimed that it is witnessing a 30% CAGR growth in registrations over the last five years.
