B2B e-commerce IndiaMART Intermesh will acquire 26% stake in industrial e-commerce firm IB Monotaro for Rs 104.2 crore. IB Monotaro under its brand name ‘Industry Buying’ is engaged in the e-commerce business for industrial and business supplies in India.
Following the transaction, Japan-based Monotaro will hold a 51.6 percent stake in IB Monotaro while Emtex Engineering, representing the promoter group and early investors, will hold a 22.4 percent stake in the company.
IndiaMART said in a statement, “IndiaMART, the largest B2B marketplace of India, has acquired 26% (on a fully diluted basis) share capital of IB Monotaro Private Limited (IMPL). The company acquired 8.1 lakh shares from Emtex Engineering Private Limited for a total consideration of Rs 104.2 crore.”
IndiaMART has been investing aggressively in startups. Last year, the company via Tradezeal acquired a 26% stake in Gurugram-based Shipway Technology for Rs 18.2 crore, and it also bought an additional 3.02% stake in Kolkata-based Truckhall. Earlier this month, Indiamart invested $2 million in EasyEcom, an e-commerce enabler platform, for a 26% stake.
IndiaMART reported a consolidated net profit of Rs 70 crore for the quarter ended December, against a net profit of Rs 80 crore from a year earlier. During the time, revenue from operations increased by 8% to Rs 188 crore, bringing total income to Rs 210 crore, but operating expenditures increased by 27% to Rs 109 crore.
As a result, the company’s profits before interest, taxes, depreciation, and amortisation (EBITDA) or operational profit for the December quarter decreased to Rs 79 crore from Rs 88 crore the previous quarter.
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