IndiaMART acquires 10% stake in identity verification platform IDfy for Rs 89.7 Cr
With a minority stake in IDfy, IndiaMART adds another name to the growing list of tech investments since the company went public in July 2019.
B2B marketplace leader IndiaMART has acquired a 10% minority stake for Rs 89.7 crore in identity verification platform IDfy on a fully diluted basis, the company said in a regulatory filing.
IndiaMART has acquired 24.69 lakh equity shares primarily through compulsory convertible debentures and compulsory convertible preference shares.
IDfy is an integrated identity platform that offers identification products including KYC and background verification, along with risk mitigation, digital onboarding, and digital privacy services.
Baldor Technologies Private Limited, which operates under the brand name IDfy, logged a total turnover of Rs 117 crore for the financial year ended March 31, 2023. The company reported revenue of Rs 57 crore in the previous fiscal year.
Commenting on the acquisition, Dinesh Agarwal, Founder and Managing Director of IndiaMART, said, “IDfy’s expertise in background verification and authentication aligns seamlessly with IndiaMART’s mission to empower businesses digitally.”
The acquisition is part of IndiaMART's broader strategy of providing various business-centric software-as-a-service (SaaS) solutions. The company has invested in primarily tech-oriented startups including Zimyo, Realbooks, IMPL, Fleetx Technologies, Busy Infotech, Simply Vyapar, Legistify, EasyEcom, and M1Xchange.
For the financial year 2024, IndiaMART logged a 21% year-on-year increase in consolidated revenue from operations to Rs 1,197 crore. During the same period, it earned Rs 334 crore in net profit, the company said in a release.
IndiaMART's shares closed 2.56% lower at Rs 2,445 apiece on the NSE as of the end of trading today.
Edited by Kanishk Singh