IndiaMart Utilizes Artificial Intelligence to Expand B2B Networking, Plans to Increase Workforce

• ByStartupStory     |    July 23, 2023

Indian B2B marketplace, IndiaMart, is leveraging artificial intelligence (AI) to enhance its match-making capabilities and expand its customer base. According to Dinesh Agarwal, the CEO of IndiaMart, the use of AI, including voice search and image recognition, has significantly improved the platform’s performance and user experience.

Agarwal emphasized that the adoption of AI has not led to job reduction but rather job augmentation, as technology advancements allow the platform to serve a broader market, thus requiring a larger workforce. Despite challenges posed by the COVID-19 pandemic, IndiaMart has been consistently adding around 200 employees every quarter.

The platform’s user base has grown to 2.80 lakh users over the past 18 months, and to accommodate the increased traffic, IndiaMart plans to add approximately 1,000 people to its workforce annually.

Regarding competition from the government’s Open Network Digital Commerce (ONDC) initiative, which aims to connect service providers and suppliers directly with their target audience, Agarwal believes that the adoption of ONDC in the B2B space will take longer due to the complexity of B2B transactions.

In a bid to leverage increasing international trade involving Indian suppliers, IndiaMart has re-launched its export offering, witnessing about 7,000 exporters using the platform since 2021.

In addition to AI integration, IndiaMart has facilitated international payments through its partnership with Tazapay, a payment gateway company, offering zero percent pricing for international payments.

IndiaMart reported a 78% rise in net profit at Rs 83 crore in the April-June quarter, primarily driven by an increased user base leading to higher revenue. The company also announced a buyback plan of 12,50,000 equity shares worth Rs 500 crore to return money to its shareholders, reflecting increased cash flow.

With around 75 lakh free suppliers and 2 lakh paying subscribers onboard, IndiaMart claims to have a 60% market share in the online B2B marketplace space, witnessing over 2 crore unique buying enquiries every quarter. The platform’s strategic use of AI and focus on customer-centricity is set to further solidify its position as a leading B2B marketplace in India.

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