The Indiamart story! Building a ₹14000 crore listed tech company. Ft. Brijesh Agrawal | EP 16 ACLR8

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https://www.youtube.com/watch?v=u1yranECf-4

[00:00] very excited to welcome Brijes Agarwal.
[00:02] Very excited to welcome Brijes Agarwal, co-founder of Indiia Mar.
[00:04] Indiia Mar was one of the first B2B Marketplace companies to list publicly in India.
[00:08] They have a market cap north of an 14,000 CR.
[00:12] One of the reasons why companies like Indi Mar being hugely successful without raising uh lots of money is because for us cost of buyer acquisition actually has been almost zero.
[00:25] We were bringing in fore an exporter initially.
[00:28] One single customer, even if they got within the year, that customer's order value would have run into tens of lacks or even CR.
[00:34] We were the first ones in India who figured out what SEO used to be.
[00:36] If you were to write the name of any product, you will only see India Mar Lings.
[00:42] Journalists at BBC, they did a documentary on Indiia Mart where they said that look, we are the ones who are creating awareness of internet in India for businesses.
[00:54] Welcome to this super exciting episode of the accelerate.
[01:00] exciting episode of the accelerate founder Academy.
[01:03] Our goal at accelerate founder Academy our goal at accelerate is to build one of the finest early stage accelerator programs in the world.
[01:08] Helping Founders from bat buil large generational and iconic companies.
[01:10] Today I'm very excited to be hosting a Founder whose Journey I've been following for many years and who has inspired many Founders to build for bat.
[01:24] Very excited to welcome bries Agarwal co-founder of indiia mar.
[01:29] When you think of indiia mat I think few words immediately come to mind patience persistence building profitably building technology for business backbone of India being super customer obsessed and being super data focused.
[01:45] Indiia Mar was one of the first B2B Marketplace companies to list publicly in India.
[01:49] They have a market cap north of INR 14,000 CR.
[01:52] They are hugely profitable and are currently building a pre-m Marketplace model to solve for the needs of 70 million small and medium businesses in India.
[02:00] Very excited to share bries sir's
[02:02] very excited to share bries sir's Journey with her audience today and
[02:04] Journey with her audience today and learn how he built such a large company
[02:06] learn how he built such a large company welcome to the founder Academy sir thank
[02:09] welcome to the founder Academy sir thank you so much Karan thank you for all
[02:10] you so much Karan thank you for all these nice
[02:12] these nice words super super excited to do this sir
[02:14] words super super excited to do this sir so sir before you know we begin you know
[02:17] so sir before you know we begin you know would love to know a little bit about
[02:19] would love to know a little bit about you know your background your family
[02:20] you know your background your family background where did you grow up where
[02:22] background where did you grow up where did you study and you know did you
[02:24] did you study and you know did you always know that you wanted to be a
[02:27] always know that you wanted to be a Founder so I come from a uh a typical
[02:30] Founder so I come from a uh a typical marwadi family uh you know which is into
[02:34] marwadi family uh you know which is into uh trading business uh my hometown is a
[02:37] uh trading business uh my hometown is a place called nanpara which is uh a small
[02:40] place called nanpara which is uh a small town right on the border of Nepal uh and
[02:43] town right on the border of Nepal uh and it is about 160 170 kilometers north of
[02:47] it is about 160 170 kilometers north of lakau um so U you know we were one large
[02:50] lakau um so U you know we were one large joint family at one point in time almost
[02:53] joint family at one point in time almost about 50 of us used to live in one
[02:55] about 50 of us used to live in one single house there amazing so we had a
[03:00] single house there amazing so we had a fantastic uh childhood uh that ways and
[03:04] fantastic uh childhood uh that ways and uh you know as you would expect being in.
[03:06] uh you know as you would expect being in a marwadi family the first thing that.
[03:08] a marwadi family the first thing that you get exposed to is counting numbers.
[03:10] you get exposed to is counting numbers managing money doing business so that is.
[03:13] managing money doing business so that is something that has uh you know been the.
[03:17] something that has uh you know been the DNA uh for us ever since the beginning.
[03:20] DNA uh for us ever since the beginning itself um and you know since you asked.
[03:22] itself um and you know since you asked whether I always wanted to be a Founder.
[03:25] whether I always wanted to be a Founder uh there was no such aspiration at all.
[03:28] uh there was no such aspiration at all uh I didn't even know what did I want to.
[03:29] uh I didn't even know what did I want to do uh it's just that studies were.
[03:32] do uh it's just that studies were happening in but uh one thing was for.
[03:34] happening in but uh one thing was for sure that at some point in time you will.
[03:36] sure that at some point in time you will do business whether it is the parental.
[03:38] do business whether it is the parental business or it is any other new business.
[03:41] business or it is any other new business that is something which would have come.
[03:42] that is something which would have come naturally but Frankly Speaking since uh.
[03:46] naturally but Frankly Speaking since uh my elder brother denesh had already.
[03:48] my elder brother denesh had already decided to start off India Mar at that.
[03:50] decided to start off India Mar at that time I was just 19 and a half uh when.
[03:54] time I was just 19 and a half uh when India Mar started so Frankly Speaking I.
[03:57] India Mar started so Frankly Speaking I didn't have a lot of majority or time.
[03:59] didn't have a lot of majority or time even to think about whether I wanted to.
[04:01] even to think about whether I wanted to be an entrepreneur or not I just joined.
[04:04] be an entrepreneur or not I just joined him and that's how it.
[04:05] him and that's how it started awesome and and where did you study and uh you know like uh like what were you studying you know or where were you working before you know you started indart so um indart as I said uh started off when I was 19 and a half I was pursuing my uh graduation second year I was at lakna University at that time uh I did my schooling from uh three places uh one in my hometown nanpara then I went to B VI M nital and then uh to St Francis College LNO uh and then eventually did my graduation from lak University and that's when indiia Mar sort of started off um and then I came to Delhi finished off my PG here uh in PG again um I got a placement um in the at the end of the third semester itself so uh and I was Exempted from attending the fourth semester because I already had uh High grades in the first three semesters so that I could easily qualify
[05:06] semesters so that I could easily qualify even if I didn't appear for the exam.
[05:09] Even if I didn't appear for the exam, so, uh, our DE actually allowed us.
[05:11] I was hired by, uh, a consulting firm in Bangalore.
[05:16] I was hired by, uh, a consulting firm in Bangalore, uh, where I worked for about, uh, 11 months.
[05:20] Uh, where I worked for about, uh, 11 months, and at the same time, uh, I also set up.
[05:22] And at the same time, uh, I also set up India Mars Bangalore office parallel.
[05:25] So I used to earn from this job, and then on the weekends, I would, uh, go ahead and, uh, set up, uh, the office.
[05:27] I used to earn from this job, and then on the weekends, I would, uh, go ahead and, uh, set up, uh, the office, also do meetings.
[05:30] Set up, uh, the office, also do meetings with potential customers.
[05:33] That's the entrepreneurial hustle.
[05:35] Entrepreneurial hustle.
[05:37] Yeah, so that's how it, it just happened.
[05:39] Yeah, so that's how it, it just happened.
[05:42] So, you know, in terms of work experience, uh, being a part of a supply chain consulting firm, uh, and that too a German consulting firm.
[05:45] So, you know, in terms of work experience, uh, being a part of a supply chain consulting firm, uh, and that too a German consulting firm.
[05:47] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[05:49] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[05:52] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[05:55] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[05:58] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[06:00] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[06:02] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution.
[06:05] I actually learned about, uh, being, uh, number-oriented, data-oriented, and going deep into understanding what actually is the problem before you start to design any solution, although, so that's the only work experience, otherwise I've have.
[06:08] only work experience otherwise I've have uh whatever I've learned uh has been uh.
[06:10] uh whatever I've learned uh has been uh while building up Indi M amazing amazing.
[06:14] while building up Indi M amazing amazing and so like uh you know you mentioned that you were very like data oriented.
[06:17] right and you still are right so like what was the initial insight about.
[06:21] what was the initial insight about indiia M that you know made you start this company and then essentially uh you know how has it evolved you know over the last.
[06:30] you like 25 years it's been a journey right so like like like has the idea changed like over time or like has the core thesis been the same.
[06:42] so if you look at our initial journey I wouldn't say we were very very data oriented at that point in time.
[06:49] I think um in any typical family business uh you would identify uh a problem that you think is exciting enough to solve.
[07:00] um and and then just start building it up uh you know right from the word go saying that okay whatever comes as a.
[07:09] saying that okay whatever comes as a problem I will go ahead and solve it as problem I will go ahead and solve it as it comes rather than think through it in it comes rather than think through it in detail.
[07:16] detail prepare so we started off like that uh and and by the way uh a bit of a context will be helpful for you.
[07:24] you started off uh on 1st of April 96 uh internet in India was launched on 15th of August 1995.
[07:37] 1995 this is about s and a half months before we started off at that time uh there were just about 500 internet connections across India my God.
[07:51] right forget about Delhi uh across India you just about had about 500 OD internet connections uh had we been data oriented probably we would not have started over with this Venture at all.
[08:01] uh we were so fascinated by the power of Internet uh you know having experienced it ourselves that we felt that look this is something
[08:09] that we felt that look this is something which is going to dramatically uh change.
[08:13] which is going to dramatically uh change the way we uh you know try to find.
[08:16] the way we uh you know try to find information and that Fascination was so.
[08:19] information and that Fascination was so strong that we said you know come what.
[08:21] strong that we said you know come what may let us just start off something in.
[08:23] may let us just start off something in this particular area because this is.
[08:25] this particular area because this is going to boom and as it booms we will.
[08:28] going to boom and as it booms we will obviously be the benefit iici of the.
[08:30] obviously be the benefit iici of the Tailwinds that come along with it so we.
[08:32] Tailwinds that come along with it so we started off with that um the first few.
[08:35] started off with that um the first few years were terrible uh first six months.
[08:38] years were terrible uh first six months were uh you know.
[08:40] were uh you know absolutely uh I can't express it in.
[08:42] absolutely uh I can't express it in words but uh we were all devastated in.
[08:45] words but uh we were all devastated in that sense at some point in time we also.
[08:46] that sense at some point in time we also thought whether this is something we.
[08:47] thought whether this is something we would ever want to.
[08:49] would ever want to do but uh thankfully because of uh the.
[08:54] do but uh thankfully because of uh the wisdom that we had from our grandfather.
[08:56] wisdom that we had from our grandfather uh he essentially without understanding.
[08:59] uh he essentially without understanding what computers are what internet is he.
[09:02] what computers are what internet is he essentially uh gave us the finest life.
[09:05] essentially uh gave us the finest life learnings that we've ever had and uh you.
[09:08] learnings that we've ever had and uh you know kept us in the hunt for building.
[09:10] know kept us in the hunt for building something out here so U we just hung something out here so U we just hung along uh trying to build this business along uh trying to build this business there and also coming in from uh a typical marar business family you were not allowed to burn money right so there was no concept of a loss there was no concept of taking debt uh there was no concept of taking money from anybody in fact to build your own business uh altoe so uh we had to figure out a profitable way of building the company out so the first Focus was you know whatever we are trying to do who's the right customer how do we convince him to buy our products so we've been a profitable company right from day one uh I think xfr Journey uh around 2013 2014 when we had spent a lot of money around building up the brand uh I don't think in any year we have been loss making uh at all uh so profitable all throughout we figured out how to sell to msmes profitably which a very very few limited number of companies have been able to do.
[10:11] number of companies have been able to do in their entire lifetime uh so far but
[10:15] but the initial uh 4year period uh as I said uh they were so difficult uh but yet say
[10:25] were they were so enriching in terms of helping us understand the psyche of these businesses uh what do they want
[10:34] how is it to be delivered to them how to service how to acquire customers learn that bit uh we then post those four years
[10:43] um then the do boom and the bust both had happened already uh we then started to uh you know focus on building up an international marketplace which is what the initial idea was right we
[10:56] actually started off with the idea of building that but um in the first six months realized that you know if there are only 500 internet connections how will people ever come and register themselves online so uh you know we Services uh business we built
[11:11] We Services uh business we built websites we did SEO for exporters here.
[11:15] Websites we did SEO for exporters here uh but then when there was enough amount.
[11:17] Uh but then when there was enough amount of visibility awareness about internet.
[11:20] Of visibility awareness about internet that's when we started to rebuild the.
[11:23] That's when we started to rebuild the entire um international marketplace uh.
[11:27] Entire um international marketplace uh built that out until 2008 uh when the.
[11:30] Built that out until 2008 uh when the lemon crisis happened um which meant.
[11:33] Lemon crisis happened um which meant that uh exports couldn't be a great.
[11:35] That uh exports couldn't be a great focus area for us to grow uh by the time.
[11:38] Focus area for us to grow uh by the time he had already by the way built up uh a.
[11:40] He had already by the way built up uh a business which was close to about 50 CR.
[11:42] Business which was close to about 50 CR in Top Line uh wow.
[11:46] And so just helping sellers from India sell.
[11:49] Sellers from India sell internationally yeah so not sell they we.
[11:52] Internationally yeah so not sell they we just help these exporters from India to.
[11:56] Just help these exporters from India to get leads and inquiries from buyers out.
[11:59] Get leads and inquiries from buyers out outside of India.
[12:01] Uh we've always been a marketplace which is been helping.
[12:03] Marketplace which is been helping connect buyers and sellers we've never.
[12:06] Connect buyers and sellers we've never ever gone into enabling sales or.
[12:09] Ever gone into enabling sales or logistics or payments by ourselves that.
[12:12] Logistics or payments by ourselves that that is something which you see commonly.
[12:15] that is something which you see commonly uh in case of BTC Commerce companies but.
[12:17] uh in case of BTC Commerce companies but in B2B that is best.
[12:18] in B2B that is best done by these businesses who've been doing it over the years correct so we.
[12:23] doing it over the years correct so we actually leave it to them uh there uh so.
[12:25] actually leave it to them uh there uh so by until 2008 2009 is uh we built this out.
[12:29] by until 2008 2009 is uh we built this out but seeing that Manufacturing in India was not growing exports were not really taking any uh you know big leaves.
[12:35] out but seeing that Manufacturing in India was not growing exports were not really taking any uh you know big leaves.
[12:37] India was not growing exports were not really taking any uh you know big leaves we we thought that if we have to grow the business we need to focus on the domestic B2B.
[12:41] really taking any uh you know big leaves we we thought that if we have to grow the business we need to focus on the domestic B2B.
[12:43] we we thought that if we have to grow the business we need to focus on the domestic B2B and that's when the switch happened from uh exports to uh B2B.
[12:45] the business we need to focus on the domestic B2B and that's when the switch happened from uh exports to uh B2B.
[12:48] and that's when the switch happened from uh exports to uh B2B within uh India as a market uh went on to build the right product uh uh for that market from there on.
[12:53] happened from uh exports to uh B2B within uh India as a market uh went on to build the right product uh uh for that market from there on.
[12:56] within uh India as a market uh went on to build the right product uh uh for that market from there on and then we finally found our real product Market fit around 2014.
[13:00] to build the right product uh uh for that market from there on and then we finally found our real product Market fit around 2014.
[13:03] that market from there on and then we finally found our real product Market fit around 2014 wow and this is so even five years after.
[13:06] finally found our real product Market fit around 2014 wow and this is so even five years after.
[13:09] fit around 2014 wow and this is so even five years after.
[13:10] five years after.
[13:13] after yeah yeah yeah five years after this and 18 years after starting the company.
[13:15] and 18 years after starting the company when we really found the right product market fit.
[13:17] when we really found the right product market fit so what you see of indiia mar today essentially that story.
[13:20] indiia mar today essentially that story started off only around 2009.
[13:22] started off only around 2009.
[13:24] 2009 uh all that was all let's say pivots and hustles to just stay afloat um and keep trying to figure out what really would work.
[13:26] uh all that was all let's say pivots and hustles to just stay afloat um and keep trying to figure out what really would work.
[13:30] hustles to just stay afloat um and keep trying to figure out what really would work and what really would help us scale.
[13:34] and what really would help us scale so that's how the journey for us has been very interesting and uh you know like how did you know that the company had kind of hit product market fit.
[13:36] been very interesting and uh you know like how did you know that the company had kind of hit product market fit.
[13:39] you had kind of hit product market fit you know like let say 2013 2014 like what were some of those signals that you started looking at.
[13:41] like what were some of those signals that you started looking at like like did you look at metrics like obviously like retention right.
[13:44] like obviously like retention right like how like how many times are people using the platform.
[13:46] like how many times are people using the platform like are the number of sellers like organically referring other sellers.
[13:48] like are the number of sellers like organically referring other sellers like like like so what were some key indicators that kind of led you to understand that now uh you know the company has kind of reach product market.
[13:51] like like so what were some key indicators that kind of led you to understand that now uh you know the company has kind of reach product market.
[13:54] understand that now uh you know the company has kind of reach product market.
[13:55] company has kind of reach product market.
[13:57] reach product market.
[13:59] product market.
[14:02] market.
[14:04] sellers.
[14:06] sellers.
[14:08] like.
[14:10] like.
[14:12] you.
[14:14] company has kind of reach product Market fit so one indicator clearly is uh the fit.
[14:19] so one indicator clearly is uh the number of rfqs or business inquiries.
[14:22] number of rfqs or business inquiries that each business started to receive.
[14:25] that each business started to receive consistently uh that was one set second.
[14:28] consistently uh that was one set second was what percentage of buyers who were posting an RFQ uh were eventually able to do business with an indiamart supplier right.
[14:31] was what percentage of buyers who were posting an RFQ uh were eventually able to do.
[14:32] posting an RFQ uh were eventually able to do business with an indiamart.
[14:35] RFQ uh were eventually able to do business with an indiamart supplier right.
[14:37] business with an indiamart supplier right uh for us the uh Financial metric of cost of customer acquisition uh and then retention and arpu actually came in next because.
[14:40] supplier right uh for us the uh Financial metric of cost of customer acquisition uh and then retention and.
[14:43] Financial metric of cost of customer acquisition uh and then retention and arpu actually came in next because.
[14:46] acquisition uh and then retention and then arpu actually came in next because for you to have a product Market fit the.
[14:48] then arpu actually came in next because for you to have a product Market fit the buyer and the seller Community which you're trying to serve essentially their interests have to be fulfilled so a.
[14:50] for you to have a product Market fit the buyer and the seller Community which you're trying to serve essentially their interests have to be fulfilled so a.
[14:52] buyer and the seller Community which you're trying to serve essentially their interests have to be fulfilled so a.
[14:54] you're trying to serve essentially their interests have to be fulfilled so a buyer has to come back and say that if I come come and post 10 rfqs here at least on eight or nine I should be able to find the right seller corre similarly.
[14:57] interests have to be fulfilled so a buyer has to come back and say that if I come come and post 10 rfqs here at least on eight or nine I should be able to find the right seller corre similarly.
[14:58] buyer has to come back and say that if I come come and post 10 rfqs here at least on eight or nine I should be able to find the right seller corre similarly.
[15:01] come come and post 10 rfqs here at least on eight or nine I should be able to find the right seller corre similarly.
[15:03] on eight or nine I should be able to find the right seller corre similarly the seller says that if I am actually reaching out to 10 buyers on the platform can I convert one or two out of them at least on a bare minimum basis as my customer that is something that.
[15:05] find the right seller corre similarly the seller says that if I am actually reaching out to 10 buyers on the platform can I convert one or two out of them at least on a bare minimum basis as my customer that is something that.
[15:07] the seller says that if I am actually reaching out to 10 buyers on the platform can I convert one or two out of them at least on a bare minimum basis as my customer that is something that.
[15:09] reaching out to 10 buyers on the platform can I convert one or two out of them at least on a bare minimum basis as my customer that is something that.
[15:12] platform can I convert one or two out of them at least on a bare minimum basis as my customer that is something that.
[15:14] them at least on a bare minimum basis as my customer that is something that.
[15:16] my customer that is something that actually got established and then actually got established and then obviously our cost of customer acquisition uh the retention percentages the kind of arpu that we could monetize from these customers.
[15:28] these were the other uh metric that we would go back and uh look at there got it got it and so like uh since we're talking about uh you know like uh helping sellers uh match with the right buyers and you know helping uh uh you know like helping them with incremental revenue and you know incremental business right so uh like so what are some key elements uh you know of a B2B Marketplace business right like I mean like U like if let's say I'm a young founder I'm starting in this space right like like one question that a Founder would always have is like do I kind of go after like do I build a supply first or do I build the demand first right like is that like is that like one element right or like how it's a massive Network effect business as well right like the more number of quality Supply you'll
[16:16] more number of quality Supply you'll have on the platform which would mean have on the platform which would mean like uh you know you'll have you know like uh you know you'll have you know good buyers and then eventually those good buyers and then eventually those buyers will get connected with the buyers will get connected with the sellers you know and they'll get sellers you know and they'll get incremental leads and you know this is incremental leads and you know this is how the word of mouth would grow right how the word of mouth would grow right so this is a very big Network effects so this is a very big Network effects business uh you know this is a business business uh you know this is a business where you know essentially uh you need where you know essentially uh you need to get the supply and demand matching to get the supply and demand matching right like you need to have your own right like you need to have your own algorithms to kind of match the two algorithms to kind of match the two correctly right uh uh you know so like correctly right uh uh you know so like so what are some key elements uh you so what are some key elements uh you know like of a B2B Market Place business know like of a B2B Market Place business that you know like when founders are that you know like when founders are building out today that they should look at when you look at uh any Marketplace at when you look at uh any Marketplace uh you rightly said that on one end uh you rightly said that on one end there will be Sellers and then on the there will be Sellers and then on the other other end uh in most of the cases uh when you end uh in most of the cases uh when you look at examples across the world people look at examples across the world people have started up building up the supply have started up building up the supply as a base first right you need to have a as a base first right you need to have a certain minimum number of uh suppliers.
[17:19] certain minimum number of uh suppliers being available on the platform uh.
[17:21] being available on the platform uh obviously it's not an easy job to go and.
[17:23] obviously it's not an easy job to go and onboard them knowing for a fact that.
[17:26] onboard them knowing for a fact that they may not get the requisite amount of.
[17:28] they may not get the requisite amount of business right from day one so um sh.
[17:31] business right from day one so um sh building actually is.
[17:33] building actually is essential um second when you are.
[17:37] essential um second when you are building these marketplaces you any way.
[17:39] building these marketplaces you any way would be spending money to acquire these.
[17:42] would be spending money to acquire these sellers right even if you it's a premium.
[17:44] sellers right even if you it's a premium model you you acquire them on on on free.
[17:47] model you you acquire them on on on free but you still need to invest your money.
[17:49] but you still need to invest your money in accessing their data working with.
[17:51] in accessing their data working with them to you know get details about their.
[17:54] them to you know get details about their products specifications prices Etc uh so.
[17:59] products specifications prices Etc uh so uh that's the first thing that most.
[18:01] uh that's the first thing that most Marketplace Builders have gone ahead and.
[18:04] Marketplace Builders have gone ahead and done um however when you look at most.
[18:08] done um however when you look at most successful.
[18:10] successful marketplaces they actually have been the.
[18:13] marketplaces they actually have been the ones where either the uh custo uh the.
[18:17] ones where either the uh custo uh the acquisition of sellers or the.
[18:20] acquisition of sellers or the acquisition of buyers that has been done.
[18:23] acquisition of buyers that has been done without spending a lot of money right so.
[18:26] without spending a lot of money right so um in fact one of the reason reasons why.
[18:30] um in fact one of the reason reasons why companies like indiamart or let's say.
[18:32] companies like indiamart or let's say Alibaba B2B uh in China uh they've been.
[18:35] Alibaba B2B uh in China uh they've been hugely.
[18:36] hugely successful uh without raising uh lots of.
[18:39] successful uh without raising uh lots of money is because for us uh cost of buyer.
[18:44] money is because for us uh cost of buyer acquisition actually has been almost.
[18:46] acquisition actually has been almost zero ever since the beginning uh we were.
[18:50] zero ever since the beginning uh we were we were the first ones in India you know.
[18:52] we were the first ones in India you know I can proudly say who figured out what.
[18:55] I can proudly say who figured out what SEO used to be or what SEO was in fact.
[18:59] SEO used to be or what SEO was in fact between 96 2000 kind of a time period if.
[19:02] between 96 2000 kind of a time period if you were to write the name of any.
[19:04] you were to write the name of any product that you uh would would write on.
[19:08] product that you uh would would write on any of the search engines including.
[19:10] any of the search engines including Yahoo Google alista hotbot.
[19:13] Yahoo Google alista hotbot WebCrawler for tens of their Pages you.
[19:17] WebCrawler for tens of their Pages you will only see indiamart links wow right.
[19:21] will only see indiamart links wow right we knew how to really get one page onto
[19:24] we knew how to really get one page onto the top listings tomorrow it was as
[19:27] the top listings tomorrow it was as quick and as uh easy and as fast as as
[19:30] quick and as uh easy and as fast as as that for us so frankly we never had to
[19:32] that for us so frankly we never had to spend money in acquiring let's say
[19:35] spend money in acquiring let's say initially international buyers from
[19:37] initially international buyers from outside of India and then buyers from
[19:39] outside of India and then buyers from within India uh even today when you go
[19:42] within India uh even today when you go ahead and write anything on Google and
[19:43] ahead and write anything on Google and say I need a supplier manufacturer for
[19:46] say I need a supplier manufacturer for this
[19:46] this product
[19:48] product default you will see India Martin the
[19:51] default you will see India Martin the top results there uh so that is
[19:53] top results there uh so that is something which which we we had cracked
[19:56] something which which we we had cracked early on and therefore building that
[19:59] early on and therefore building that uh side of the marketplace became a lot
[20:02] uh side of the marketplace became a lot more easier and faster for us because
[20:05] more easier and faster for us because you know that meant that we didn't need
[20:07] you know that meant that we didn't need to raise Capital it also meant that we
[20:09] to raise Capital it also meant that we could reach out to a much wider audience
[20:12] could reach out to a much wider audience uh anybody who comes on internet will go
[20:13] uh anybody who comes on internet will go to a search engine and therefore uh we
[20:16] to a search engine and therefore uh we are present uh right up there in front
[20:19] are present uh right up there in front of them so that really um actually
[20:22] of them so that really um actually helped quite a bit uh but then the
[20:25] helped quite a bit uh but then the larger Focus if you see on why we have
[20:28] larger Focus if you see on why we have been more successful than a lot of other
[20:30] been more successful than a lot of other companies who tried to build similar B2B
[20:33] companies who tried to build similar B2B marketplaces in India has been the focus
[20:38] marketplaces in India has been the focus on one uh aggregating large amount of
[20:42] on one uh aggregating large amount of data
[20:44] data consistently uh right from 96 till date
[20:48] consistently uh right from 96 till date there is an obsession that uh if I do
[20:52] there is an obsession that uh if I do not find one particular company's
[20:54] not find one particular company's information available on indiamart uh
[20:57] information available on indiamart uh you know people would ask themselves
[20:59] you know people would ask themselves this question how did I really miss this
[21:02] this question how did I really miss this company uh to be added to India Mart at
[21:06] company uh to be added to India Mart at all and and is this across
[21:08] all and and is this across categories across categories this is
[21:11] categories across categories this is like any business in India any any
[21:14] like any business in India any any business wow right and it has to be
[21:16] business wow right and it has to be there any business which is B2B has to
[21:19] there any business which is B2B has to be there and and that Focus that passion
[21:22] be there and and that Focus that passion to get every seller on board you can see
[21:25] to get every seller on board you can see it all across uh you know every single
[21:29] it all across uh you know every single Team every single team member uh would
[21:31] Team every single team member uh would want to do this second uh when you look
[21:35] want to do this second uh when you look at a developing country like India where
[21:39] at a developing country like India where uh phone numbers for example kept
[21:40] uh phone numbers for example kept changing every two years three years
[21:43] changing every two years three years correct right
[21:44] correct right correct would still remember late 90s
[21:47] correct would still remember late 90s early 2000s this is something which was
[21:49] early 2000s this is something which was a common phenomenon how do you keep the
[21:52] a common phenomenon how do you keep the information uh ACC relevant
[21:56] information uh ACC relevant updated uh this is something which was
[21:58] updated uh this is something which was very difficult problem to solve we
[22:00] very difficult problem to solve we continue to invest behind that in fact
[22:03] continue to invest behind that in fact whatever money we' made in the business
[22:04] whatever money we' made in the business was invested back in doing this third uh
[22:09] was invested back in doing this third uh uh when you look at small businesses you
[22:11] uh when you look at small businesses you will not see them having brochures you
[22:13] will not see them having brochures you will not see them having dock files with
[22:15] will not see them having dock files with images of uh their uh products with
[22:19] images of uh their uh products with specifications this is not something
[22:20] specifications this is not something that existed anywhere so we would have
[22:23] that existed anywhere so we would have to go sit with them uh you know click
[22:26] to go sit with them uh you know click photographs write down these
[22:27] photographs write down these descriptions with them create these
[22:29] descriptions with them create these cataloges we created that
[22:32] cataloges we created that information right it was not just a
[22:35] information right it was not just a contact information directory where name
[22:37] contact information directory where name of the company and phone number and
[22:38] of the company and phone number and email were actually built up the entire
[22:41] email were actually built up the entire catalog for these companies because
[22:44] catalog for these companies because within we to be for you to take a
[22:45] within we to be for you to take a decision you need all of this
[22:47] decision you need all of this information right up there so the
[22:49] information right up there so the quality of information the volume of
[22:52] quality of information the volume of data uh about Sellers and their products
[22:56] data uh about Sellers and their products uh that has been uh uh you know a
[23:01] uh that has been uh uh you know a Pursuit which we continue to have uh and
[23:04] Pursuit which we continue to have uh and that is where we have been better than
[23:08] that is where we have been better than everybody else in this entire market
[23:10] everybody else in this entire market right uh buyer acquisition over a period
[23:13] right uh buyer acquisition over a period of time a lot of people learned how to
[23:15] of time a lot of people learned how to do that uh but since we had the most
[23:18] do that uh but since we had the most extensive information most relevant and
[23:20] extensive information most relevant and most accurate information today even if
[23:23] most accurate information today even if if Google has to show you results
[23:27] if Google has to show you results without indiia data it will not be able
[23:29] without indiia data it will not be able to show you accurate B2B uh results
[23:33] to show you accurate B2B uh results altoe that is the kind of uh you know
[23:37] altoe that is the kind of uh you know aggregation uh that we've been able to
[23:39] aggregation uh that we've been able to do here within India it's a very
[23:41] do here within India it's a very fragmented Marketplace very very hard to
[23:44] fragmented Marketplace very very hard to build interesting and uh you know like
[23:47] build interesting and uh you know like was this always like uh for uh you know
[23:50] was this always like uh for uh you know getting good sellers on the platform and
[23:52] getting good sellers on the platform and essentially getting a lot of their
[23:53] essentially getting a lot of their relevant data on the platform like was
[23:55] relevant data on the platform like was it always like a fleet on Street model
[23:57] it always like a fleet on Street model uh which would then essentially build
[23:59] uh which would then essentially build trust with these businesses as well or
[24:01] trust with these businesses as well or like was that also acquired through
[24:03] like was that also acquired through technology and then essentially uh you
[24:05] technology and then essentially uh you know like you would also have your teams
[24:07] know like you would also have your teams then visit these places and then verify
[24:09] then visit these places and then verify the data as
[24:10] the data as well so in fact it all started with 100%
[24:13] well so in fact it all started with 100% feat on Street model because um in '96
[24:16] feat on Street model because um in '96 as I said people didn't even know what
[24:18] as I said people didn't even know what internet was yeah so forget about indiia
[24:20] internet was yeah so forget about indiia we had to First sell internet to them as
[24:22] we had to First sell internet to them as why internet is going to be useful right
[24:24] why internet is going to be useful right so we had to really do this education in
[24:27] so we had to really do this education in fact one of the uh journalists at BBC uh
[24:33] fact one of the uh journalists at BBC uh they were doing some study in muradabad
[24:35] they were doing some study in muradabad on handicraft exports everybody that
[24:38] on handicraft exports everybody that they met with told them that uh you know
[24:40] they met with told them that uh you know there are these folks from indiamart who
[24:41] there are these folks from indiamart who come us and who teach us on how to use
[24:43] come us and who teach us on how to use internet so that we could reach out to
[24:45] internet so that we could reach out to buyers so in fact they did a documentary
[24:49] buyers so in fact they did a documentary on indiia Mt where they said that look
[24:51] on indiia Mt where they said that look we are the ones who are creating
[24:54] we are the ones who are creating awareness of internet in India for
[24:57] awareness of internet in India for businesses H right A lot of people would
[25:00] businesses H right A lot of people would write to us saying that you know are you
[25:01] write to us saying that you know are you a entity of government of India who
[25:04] a entity of government of India who would do this kind of a data agregation
[25:07] would do this kind of a data agregation and awareness campaigns but look we had
[25:10] and awareness campaigns but look we had to survive there so we had to educate
[25:12] to survive there so we had to educate people about internet wouldn't have been
[25:14] people about internet wouldn't have been done uh using any technology you know
[25:17] done uh using any technology you know those were times when phones also were
[25:19] those were times when phones also were not
[25:20] not common you know cost of calls were very
[25:22] common you know cost of calls were very very expensive so it all started with
[25:24] very expensive so it all started with feton street today in fact if you see uh
[25:27] feton street today in fact if you see uh it's a mix of both feton Street as well
[25:29] it's a mix of both feton Street as well as technology but uh when you are
[25:32] as technology but uh when you are looking at micro and small businesses
[25:34] looking at micro and small businesses who are you know primary customers for
[25:37] who are you know primary customers for them DIY model in India still does not
[25:41] them DIY model in India still does not work interesting they need handholding
[25:44] work interesting they need handholding they need people to talk to them but yes
[25:47] they need people to talk to them but yes the Reliance on 100% Fon Street
[25:49] the Reliance on 100% Fon Street obviously has now given way to uh doing
[25:53] obviously has now given way to uh doing things over the phone uh doing things
[25:56] things over the phone uh doing things over an app uh you know so the
[25:59] over an app uh you know so the percentage spread across feet on street
[26:02] percentage spread across feet on street across telephone across uh technology uh
[26:06] across telephone across uh technology uh that has been moving in favor of uh
[26:09] that has been moving in favor of uh telephone and
[26:11] telephone and Technology interesting and I think your
[26:14] Technology interesting and I think your focus you know on getting such relevant
[26:16] focus you know on getting such relevant data and getting such relevant you know
[26:18] data and getting such relevant you know suppliers also kind of meant that you
[26:21] suppliers also kind of meant that you know there was lesser friction on the
[26:23] know there was lesser friction on the platform and essentially like you were
[26:24] platform and essentially like you were able to build trust you know with all
[26:26] able to build trust you know with all the demand that you were generating
[26:27] the demand that you were generating right because like uh you know like
[26:29] right because like uh you know like buyers would be able to connect with the
[26:31] buyers would be able to connect with the right sellers who had the right
[26:33] right sellers who had the right information on the platform right uh and
[26:36] information on the platform right uh and the most relevant the most updated
[26:38] the most relevant the most updated information as well so I think your
[26:39] information as well so I think your efforts in terms of you know building
[26:41] efforts in terms of you know building that great Supply and great quality
[26:42] that great Supply and great quality Supply also kind of meant that you know
[26:45] Supply also kind of meant that you know you were able to develop that brand
[26:46] you were able to develop that brand trust you know on the demand
[26:49] trust you know on the demand side so if you see um um see one
[26:53] side so if you see um um see one important factor when you're looking at
[26:55] important factor when you're looking at building up a Marketplace is also time
[26:58] building up a Marketplace is also time uh you know if you are a very uh
[27:01] uh you know if you are a very uh impatient founder or an investor who
[27:04] impatient founder or an investor who wants to build this up very very
[27:06] wants to build this up very very quickly right uh I I at least uh I I
[27:10] quickly right uh I I at least uh I I can't see any other way out rather than
[27:12] can't see any other way out rather than burning a lot of money there uh if you
[27:14] burning a lot of money there uh if you really look at uh you know our own
[27:17] really look at uh you know our own Journey as I said we found our product
[27:19] Journey as I said we found our product Market fed after 18 years of doing this
[27:21] Market fed after 18 years of doing this yeah yeah right so imagine the kind of
[27:24] yeah yeah right so imagine the kind of time we had of uh you know trying to
[27:27] time we had of uh you know trying to aggregate this content bid by bid and
[27:30] aggregate this content bid by bid and therefore rather than focusing on any
[27:31] therefore rather than focusing on any vertical we focused on a horizontal
[27:33] vertical we focused on a horizontal Marketplace um and a lot of categories
[27:37] Marketplace um and a lot of categories where we aggregated sellers sellers did
[27:39] where we aggregated sellers sellers did not get any business altogether because
[27:40] not get any business altogether because there weren't enough buyers available
[27:43] there weren't enough buyers available for those categories initially at that
[27:45] for those categories initially at that point in time uh so but it was fine uh
[27:48] point in time uh so but it was fine uh what we discovered uh with this approach
[27:51] what we discovered uh with this approach is which categories actually are working
[27:54] is which categories actually are working at what point in
[27:56] at what point in time that IND Goods is something which
[27:59] time that IND Goods is something which which actually uh wasn't working uh
[28:03] which actually uh wasn't working uh initially we thought you know this is an
[28:04] initially we thought you know this is an area where it is so hard to find sellers
[28:07] area where it is so hard to find sellers but it didn't work initially today it is
[28:09] but it didn't work initially today it is one of the largest categories uh
[28:11] one of the largest categories uh contributing to the overall business so
[28:13] contributing to the overall business so things have evolved things have changed
[28:16] things have evolved things have changed um in the early 2000s handicraft apparel
[28:20] um in the early 2000s handicraft apparel you know were like uh Industries selling
[28:23] you know were like uh Industries selling like hot cakes uh today you look at
[28:25] like hot cakes uh today you look at industrial goods building construction
[28:27] industrial goods building construction material chem
[28:29] material chem these are categories which will
[28:30] these are categories which will contribute significantly more uh than a
[28:34] contribute significantly more uh than a lot of other categories so uh we we were
[28:37] lot of other categories so uh we we were able to see the Trends on where is it
[28:40] able to see the Trends on where is it that you are able to get buyers and then
[28:43] that you are able to get buyers and then we uh molded our monetization engine
[28:46] we uh molded our monetization engine towards those categories uh as you know
[28:49] towards those categories uh as you know when the right time really came
[28:51] when the right time really came in interesting and I think that's why
[28:54] in interesting and I think that's why you know I in the introduction as well I
[28:56] you know I in the introduction as well I like use one word which is patience
[28:57] like use one word which is patience right like you know like like figuring
[29:00] right like you know like like figuring out the business over 18 years right
[29:02] out the business over 18 years right like eventually requires a lot of time
[29:05] like eventually requires a lot of time patience persistence right and and like
[29:07] patience persistence right and and like in the scenario that we have today right
[29:10] in the scenario that we have today right like essentially where you know consumer
[29:12] like essentially where you know consumer internet has evolved from those 500
[29:14] internet has evolved from those 500 users to let's say 700 800 million users
[29:17] users to let's say 700 800 million users on the internet right so uh do you think
[29:19] on the internet right so uh do you think that Founders can you know still use
[29:23] that Founders can you know still use this kind of approach build patiently uh
[29:26] this kind of approach build patiently uh you know build for the longterm or I
[29:28] you know build for the longterm or I mean does today like if you're looking
[29:29] mean does today like if you're looking at like a Founder is looking at building
[29:31] at like a Founder is looking at building a B2B Marketplace maybe vertical right
[29:34] a B2B Marketplace maybe vertical right do they require a lot of capital to kind
[29:36] do they require a lot of capital to kind of then get into this
[29:39] of then get into this piece okay so I fundamentally have a
[29:42] piece okay so I fundamentally have a philosophy around uh you know uh when is
[29:47] philosophy around uh you know uh when is it that you would need a lot of time or
[29:49] it that you would need a lot of time or less time versus lot of money versus
[29:52] less time versus lot of money versus less money uh and there's a very simple
[29:55] less money uh and there's a very simple framework that we
[29:57] framework that we follow in my opinion when we look at any
[30:00] follow in my opinion when we look at any business there are two crucial elements
[30:03] business there are two crucial elements one is what is the value in the eyes of
[30:07] one is what is the value in the eyes of the customer for a product or a service
[30:10] the customer for a product or a service that you are delivering to them and then
[30:12] that you are delivering to them and then what is the cost uh of that same product
[30:16] what is the cost uh of that same product um or service uh for it to be delivered
[30:20] um or service uh for it to be delivered to the
[30:21] to the customer the larger the gap between the
[30:25] customer the larger the gap between the value and the cost
[30:28] value and the cost the Lesser is the Reliance that you will
[30:31] the Lesser is the Reliance that you will have on capital or you would have to
[30:33] have on capital or you would have to really worry about
[30:36] really worry about time right the the lesser the gap
[30:39] time right the the lesser the gap between the value the perceived value uh
[30:42] between the value the perceived value uh versus the actual cost the higher is the
[30:46] versus the actual cost the higher is the struggle uh where a lot of cash comes
[30:49] struggle uh where a lot of cash comes into play and therefore time also sort
[30:51] into play and therefore time also sort of becomes very very short for people
[30:53] of becomes very very short for people because uh you know people with larger
[30:56] because uh you know people with larger sums of capital can uh you know burn you
[31:00] sums of capital can uh you know burn you out very very quickly just because they
[31:02] out very very quickly just because they have access to a lot of capital right
[31:05] have access to a lot of capital right which is what soft banks of the world
[31:06] which is what soft banks of the world have been trying to do across the world
[31:09] have been trying to do across the world right so uh in our business when we
[31:13] right so uh in our business when we looked at uh building up India Mar the
[31:16] looked at uh building up India Mar the value that we were bringing in for an
[31:18] value that we were bringing in for an exporter initially right that one single
[31:21] exporter initially right that one single customer even if they got within the
[31:23] customer even if they got within the year that customers's order value would
[31:25] year that customers's order value would have run into tens of lacks or even CR
[31:28] have run into tens of lacks or even CR and the money uh that uh you know it
[31:31] and the money uh that uh you know it took us to deliver that particular
[31:34] took us to deliver that particular product or service would run into a few
[31:37] product or service would run into a few thousands only yeah so the ROI for the
[31:39] thousands only yeah so the ROI for the seller was
[31:41] seller was massive no I I'm seeing um the ROI will
[31:45] massive no I I'm seeing um the ROI will depend upon how we price the product
[31:47] depend upon how we price the product yeah right but but the differential
[31:49] yeah right but but the differential between value for the buyer and the lost
[31:52] between value for the buyer and the lost for us was tremendous so even when we
[31:55] for us was tremendous so even when we said look I will build a business with
[31:57] said look I will build a business with 30 % margin the price for the buyer was
[32:02] 30 % margin the price for the buyer was still very very
[32:03] still very very low see if you deliver value worth 100
[32:07] low see if you deliver value worth 100 rupees and it costs you to deliver that
[32:10] rupees and it costs you to deliver that value for 50 rupees right you will let's
[32:13] value for 50 rupees right you will let's say price the product at 70 75 80
[32:16] say price the product at 70 75 80 correct right which means the customer
[32:19] correct right which means the customer will see not see it as a very exciting
[32:22] will see not see it as a very exciting proposition yeah but if the value that
[32:25] proposition yeah but if the value that you deliver is 100 and the cost for you
[32:26] you deliver is 100 and the cost for you is one Rupee yeah even if you price it
[32:29] is one Rupee yeah even if you price it at 10 correct the the customer will see
[32:32] at 10 correct the the customer will see will see this as a great value for them
[32:35] will see this as a great value for them yeah so I I think one of the things that
[32:39] yeah so I I think one of the things that uh Founders should really look at is to
[32:44] uh Founders should really look at is to identify problems where this value cost
[32:48] identify problems where this value cost differential is extremely high if they
[32:51] differential is extremely high if they do that uh I think they can build the
[32:54] do that uh I think they can build the business patiently uh without needing a
[32:57] business patiently uh without needing a lot of capital
[32:58] lot of capital without getting into those anxious
[33:01] without getting into those anxious moments of you know life and death
[33:03] moments of you know life and death wherein if tomorrow somebody doesn't
[33:05] wherein if tomorrow somebody doesn't come in with a large check they will die
[33:08] come in with a large check they will die yeah those kind of scenarios will not
[33:10] yeah those kind of scenarios will not exist uh for those businesses whereas
[33:14] exist uh for those businesses whereas for Founders who decide to look at other
[33:16] for Founders who decide to look at other businesses uh you know what you see in
[33:19] businesses uh you know what you see in the e-commerce game for example is a
[33:21] the e-commerce game for example is a business where the perceived value
[33:23] business where the perceived value versus the cost that differential is
[33:25] versus the cost that differential is quite low right it's a Market
[33:28] quite low right it's a Market opportunity there is no doubt about it
[33:30] opportunity there is no doubt about it but then what it means is you as a
[33:32] but then what it means is you as a Founder should have the skill set to be
[33:34] Founder should have the skill set to be able to raise tons of capital right as
[33:37] able to raise tons of capital right as in when you really want it if you don't
[33:39] in when you really want it if you don't have that capability then don't get into
[33:41] have that capability then don't get into that business uh when you look at the
[33:44] that business uh when you look at the public listed companies how many
[33:47] public listed companies how many companies would you find who would have
[33:49] companies would you find who would have raised billions of dollar to build that
[33:51] raised billions of dollar to build that kind of a size in scale if you look at
[33:52] kind of a size in scale if you look at that number that number is so small
[33:55] that number that number is so small correct correct that you will be
[33:56] correct correct that you will be convinced that it there is no dirth of
[33:59] convinced that it there is no dirth of ideas of building up large scale
[34:01] ideas of building up large scale businesses or highly valued businesses
[34:04] businesses or highly valued businesses uh without having to deploy tons of
[34:06] uh without having to deploy tons of capital in the beginning but you will
[34:08] capital in the beginning but you will have you you'll have to go ahead and
[34:10] have you you'll have to go ahead and find those kinds of opportunities or
[34:12] find those kinds of opportunities or those kind of problems where the value
[34:14] those kind of problems where the value versus cost cap is uh very very high
[34:18] versus cost cap is uh very very high yeah no I I think that's a very very
[34:20] yeah no I I think that's a very very interesting framework you know for any
[34:22] interesting framework you know for any founder to kind of look at flick spend a
[34:24] founder to kind of look at flick spend a lot of time on your problem on your why
[34:26] lot of time on your problem on your why on the need that you are solving right
[34:28] on the need that you are solving right identify that category where there's you
[34:30] identify that category where there's you know perceive value versus the cost in
[34:32] know perceive value versus the cost in terms of your Leverage is is is very
[34:35] terms of your Leverage is is is very high so that then you can price it
[34:36] high so that then you can price it accordingly still provide incremental
[34:38] accordingly still provide incremental value and still have high gross margins
[34:40] value and still have high gross margins on the on the business yeah correct
[34:43] on the on the business yeah correct because see when you look at um say a
[34:45] because see when you look at um say a flip cart or an Amazon in in India today
[34:48] flip cart or an Amazon in in India today they spend value in getting a seller on
[34:50] they spend value in getting a seller on board they spend uh a lot of money in
[34:52] board they spend uh a lot of money in getting the buyers by giving discounts
[34:55] getting the buyers by giving discounts by doing advertising now they are
[34:57] by doing advertising now they are actually spending money on both ends to
[35:00] actually spending money on both ends to get them to a platform the cost of
[35:02] get them to a platform the cost of delivering a value is exceptionally high
[35:05] delivering a value is exceptionally high and then you know when you're selling a
[35:06] and then you know when you're selling a phone what value can you deliver which
[35:09] phone what value can you deliver which is additional to what is being delivered
[35:11] is additional to what is being delivered offline right and therefore uh they used
[35:15] offline right and therefore uh they used Capital uh as a tool to uh start to
[35:19] Capital uh as a tool to uh start to differentiate you know by building up
[35:21] differentiate you know by building up Logistics as a network so home
[35:22] Logistics as a network so home deliveries cash on delivery they b a lot
[35:26] deliveries cash on delivery they b a lot of money they a lot of innovation uh to
[35:29] of money they a lot of innovation uh to do this bit uh right to create this but
[35:33] do this bit uh right to create this but at the same time you will also have a
[35:35] at the same time you will also have a company like Zoho in uh in the country
[35:38] company like Zoho in uh in the country never raised any Capital yeah di built
[35:41] never raised any Capital yeah di built up a international
[35:43] up a international business uh the most phenomenal Topline
[35:46] business uh the most phenomenal Topline bottom line growth rates that you could
[35:48] bottom line growth rates that you could see uh today in any e-commerce business
[35:51] see uh today in any e-commerce business yeah right um and and they do what they
[35:54] yeah right um and and they do what they want to do because there's no monkey
[35:55] want to do because there's no monkey sitting on the back yeah
[35:58] sitting on the back yeah yeah interesting interesting so uh you
[36:02] yeah interesting interesting so uh you know so I would also you know love to
[36:04] know so I would also you know love to understand you know your thesis you know
[36:06] understand you know your thesis you know on the whole SMB digitization in the
[36:08] on the whole SMB digitization in the country right like you know like I think
[36:11] country right like you know like I think last three years you know like India Mar
[36:13] last three years you know like India Mar has you know made multiple investments
[36:14] has you know made multiple investments in other companies as well you've bought
[36:16] in other companies as well you've bought some companies outright as well and you
[36:18] some companies outright as well and you know uh you know like one could see a
[36:20] know uh you know like one could see a trend where you kind of uh you know like
[36:22] trend where you kind of uh you know like going deeper uh into certain categories
[36:25] going deeper uh into certain categories like accounting helping businesses with
[36:27] like accounting helping businesses with GST tax filing legal invoicing logistic
[36:30] GST tax filing legal invoicing logistic supply chain visibility right so uh you
[36:34] supply chain visibility right so uh you know so like so can you elaborate a
[36:36] know so like so can you elaborate a little bit on that strategy uh you know
[36:38] little bit on that strategy uh you know like why this uh you know why this why
[36:41] like why this uh you know why this why now and uh you know like like between
[36:44] now and uh you know like like between these categories like accounting legal
[36:47] these categories like accounting legal GST or Logistics like what are some
[36:49] GST or Logistics like what are some categories which according to you might
[36:51] categories which according to you might get digitized first as compared uh you
[36:55] get digitized first as compared uh you know to some other categories
[36:58] know to some other categories so one uh the Investments that we have
[37:00] so one uh the Investments that we have gone ahead and made uh in various
[37:03] gone ahead and made uh in various businesses uh we categorize into uh you
[37:07] businesses uh we categorize into uh you know two parts one uh is the accounting
[37:10] know two parts one uh is the accounting uh software business uh which we think
[37:14] uh software business uh which we think uh you know is is something which is an
[37:17] uh you know is is something which is an additional need for our existing uh
[37:21] additional need for our existing uh Target customer base of micro and small
[37:23] Target customer base of micro and small businesses it fits in well very very
[37:25] businesses it fits in well very very well so that's the initial thought that
[37:27] well so that's the initial thought that you know like what what is an existing
[37:28] you know like what what is an existing need which you can solve to your
[37:29] need which you can solve to your existing customer correct so we said
[37:31] existing customer correct so we said that uh look uh we have always been a
[37:35] that uh look uh we have always been a high Growth Company all these 27 years
[37:38] high Growth Company all these 27 years we only have been focused on solving one
[37:40] we only have been focused on solving one problem which is how do I help a small
[37:44] problem which is how do I help a small business find a new customer right that
[37:47] business find a new customer right that is what we've been doing all these 27
[37:49] is what we've been doing all these 27 years we've not done anything else apart
[37:51] years we've not done anything else apart from this incredible uh now if you were
[37:54] from this incredible uh now if you were to look at the next 25 years next 30
[37:57] to look at the next 25 years next 30 years for us and still remain a high
[37:58] years for us and still remain a high growth company we said that we need to
[38:01] growth company we said that we need to now start picking up the second problem
[38:04] now start picking up the second problem that we can go and solve for these
[38:06] that we can go and solve for these existing customers so we one we become
[38:08] existing customers so we one we become very relevant for them uh right uh you
[38:12] very relevant for them uh right uh you get a higher wallet share we know these
[38:15] get a higher wallet share we know these customers how to sell them how to
[38:17] customers how to sell them how to service them uh so that comes in as an
[38:19] service them uh so that comes in as an advantage and it also allows us to
[38:22] advantage and it also allows us to improve the customer retention because
[38:24] improve the customer retention because you know if you're solving multiple
[38:26] you know if you're solving multiple things for the same customer it's very
[38:28] things for the same customer it's very difficult for a customer to leave you
[38:30] difficult for a customer to leave you the stickiness goes up yeah so in in
[38:33] the stickiness goes up yeah so in in that sense we said accounting we are
[38:35] that sense we said accounting we are thoroughly convinced uh is the second
[38:38] thoroughly convinced uh is the second problem because DST compliances taxation
[38:42] problem because DST compliances taxation accounting has become uh extremely
[38:45] accounting has become uh extremely critical uh and it's also complex uh so
[38:49] critical uh and it's also complex uh so so we look at that business that's a
[38:52] so we look at that business that's a clearcut uh business opportunity that we
[38:55] clearcut uh business opportunity that we will pursue we are going to build
[38:58] will pursue we are going to build uh a business out of it by ourselves and
[39:00] uh a business out of it by ourselves and that's how we also went and did one 100%
[39:04] that's how we also went and did one 100% acquisition large acquisition for our
[39:07] acquisition large acquisition for our when you look at the other Investments
[39:10] when you look at the other Investments these are investments which are in
[39:12] these are investments which are in companies who are trying to solve um you
[39:16] companies who are trying to solve um you know problems
[39:18] know problems associated with you know ensuring a
[39:22] associated with you know ensuring a complete Commerce experience on the B2B
[39:24] complete Commerce experience on the B2B side so some of these are on the finance
[39:27] side so some of these are on the finance payment side some of these are on
[39:29] payment side some of these are on logistic side some of these are on pure
[39:33] logistic side some of these are on pure uh let's say automation of existing uh
[39:36] uh let's say automation of existing uh processes existing system side which MSM
[39:38] processes existing system side which MSM is typically use there are view is that
[39:41] is typically use there are view is that we will work with these Founders these
[39:43] we will work with these Founders these companies uh to see uh you know how msme
[39:48] companies uh to see uh you know how msme uh customer base or the business
[39:51] uh customer base or the business customers that serves is evolving over a
[39:54] customers that serves is evolving over a period of time and how can we uh lever
[39:57] period of time and how can we uh lever the uh Power of India M Network yeah to
[40:01] the uh Power of India M Network yeah to one help them grow as well as uh let's
[40:04] one help them grow as well as uh let's say tomorrow if for a certain portion of
[40:07] say tomorrow if for a certain portion of our buyers and sellers we need to uh
[40:09] our buyers and sellers we need to uh enable Commerce we are able to build an
[40:11] enable Commerce we are able to build an ecosystem around it so that is something
[40:13] ecosystem around it so that is something which is a very
[40:14] which is a very long-term um uh view that we are trying
[40:18] long-term um uh view that we are trying to do uh it will it will evolve over a
[40:21] to do uh it will it will evolve over a period of time uh right and therefore uh
[40:25] period of time uh right and therefore uh those Investments typically are from the
[40:28] those Investments typically are from the Viewpoint that uh while we work with
[40:31] Viewpoint that uh while we work with other founders of those companies where
[40:33] other founders of those companies where we've invested in we see how this space
[40:36] we've invested in we see how this space involves uh sorry evolves and then uh we
[40:40] involves uh sorry evolves and then uh we are ahead of time as compared to any
[40:42] are ahead of time as compared to any other competition in this field to go
[40:45] other competition in this field to go back uh and try to solve emerging new
[40:48] back uh and try to solve emerging new problems of these customers that we
[40:50] problems of these customers that we serve today interesting interesting I
[40:53] serve today interesting interesting I think uh one Trend that I'm really
[40:54] think uh one Trend that I'm really picking up is that you know your focus
[40:57] picking up is that you know your focus OB most ly on in terms of you know
[40:58] OB most ly on in terms of you know whether perceived value is high and the
[41:00] whether perceived value is high and the cost is low right like if you look at
[41:02] cost is low right like if you look at accounting Tech as well like it's a it's
[41:04] accounting Tech as well like it's a it's a non-glamorous category like you'll not
[41:06] a non-glamorous category like you'll not have lot of massive VC funded companies
[41:08] have lot of massive VC funded companies in the space you'll have lot like you
[41:10] in the space you'll have lot like you know traditional businesses being built
[41:12] know traditional businesses being built over years being built over trust right
[41:14] over years being built over trust right deling value right so I think there's
[41:16] deling value right so I think there's this one clear focus on non-glamorous
[41:18] this one clear focus on non-glamorous categories non like non categories which
[41:22] categories non like non categories which are not like really great from a VC
[41:23] are not like really great from a VC point of view but also you know where
[41:25] point of view but also you know where you there's a definite cost Advantage
[41:27] you there's a definite cost Advantage you can leverage your existing
[41:28] you can leverage your existing relationships your existing customer
[41:30] relationships your existing customer base and the value also is very high for
[41:32] base and the value also is very high for a business because obviously challenges
[41:33] a business because obviously challenges like GST like so many uh uh you know
[41:36] like GST like so many uh uh you know documentation that you need to do Post
[41:38] documentation that you need to do Post GST as well so like that that also is a
[41:40] GST as well so like that that also is a big problem to solve right so uh I think
[41:43] big problem to solve right so uh I think uh uh you know again uh super
[41:45] uh uh you know again uh super interesting and so like according to you
[41:47] interesting and so like according to you like if you know like they young
[41:49] like if you know like they young Founders you know like who are building
[41:50] Founders you know like who are building in this space like there's 70 million
[41:52] in this space like there's 70 million smes in India right they could like
[41:55] smes in India right they could like around 10 million GST business which are
[41:57] around 10 million GST business which are GST registered right so what are you
[41:59] GST registered right so what are you know some more categories you know like
[42:01] know some more categories you know like if you were to spill some Secrets or
[42:03] if you were to spill some Secrets or give us some you know insights in terms
[42:05] give us some you know insights in terms of uh you know like generally categories
[42:07] of uh you know like generally categories that you are excited by that which are
[42:08] that you are excited by that which are high growth in the immediate term which
[42:11] high growth in the immediate term which Founders which are found opportunities
[42:13] Founders which are found opportunities that Founders can
[42:14] that Founders can pursue well so I wouldn't say there's
[42:18] pursue well so I wouldn't say there's something that we will say is available
[42:19] something that we will say is available in immediate term because uh if there
[42:22] in immediate term because uh if there was something in the immediate term we
[42:23] was something in the immediate term we would have definitely wanted to do it by
[42:25] would have definitely wanted to do it by ourselves uh but uh you know some of
[42:28] ourselves uh but uh you know some of these areas which uh we do see emerging
[42:31] these areas which uh we do see emerging in the medium term or in the long term
[42:33] in the medium term or in the long term here uh one clearly is uh people
[42:37] here uh one clearly is uh people building up vertical Commerce plays
[42:39] building up vertical Commerce plays within the B2B space um you know and any
[42:43] within the B2B space um you know and any particular categories there no there are
[42:45] particular categories there no there are multiple categories in fact that people
[42:47] multiple categories in fact that people have sort of tried to build uh business
[42:49] have sort of tried to build uh business models on you can look at off business
[42:52] models on you can look at off business uh you could look at inam Market medical
[42:55] uh you could look at inam Market medical Bazar um of these companies which have
[42:59] Bazar um of these companies which have trying to solve these problems but uh
[43:01] trying to solve these problems but uh I'm saying that's one area of
[43:04] I'm saying that's one area of opportunity uh that people would be able
[43:07] opportunity uh that people would be able to look at second uh and which is going
[43:10] to look at second uh and which is going to work according to me only in the long
[43:11] to work according to me only in the long run is that uh the adoption of SAS by
[43:17] run is that uh the adoption of SAS by small businesses in
[43:19] small businesses in India uh I think that is something which
[43:21] India uh I think that is something which is uh clearly visible that will up even
[43:26] is uh clearly visible that will up even though you will not be able to monetize
[43:28] though you will not be able to monetize it as well as you can do it in the
[43:30] it as well as you can do it in the Western countries but I think as I said
[43:32] Western countries but I think as I said if you if you were to look at a 10 15 20
[43:35] if you if you were to look at a 10 15 20 year kind of a horizon yeah uh very very
[43:38] year kind of a horizon yeah uh very very exciting uh opportunities that one could
[43:40] exciting uh opportunities that one could really uh look at there uh third is that
[43:44] really uh look at there uh third is that uh you know if you look at uh business
[43:48] uh you know if you look at uh business coaching Al together you know that as a
[43:51] coaching Al together you know that as a business uh even though it doesn't get
[43:52] business uh even though it doesn't get talked about these days quite a lot but
[43:56] talked about these days quite a lot but uh at least the three or four business
[44:00] uh at least the three or four business coaches that I know of if I combine
[44:03] coaches that I know of if I combine their annual turnover and the kind of P
[44:07] their annual turnover and the kind of P they make wow uh it will be in excess so
[44:11] they make wow uh it will be in excess so the Top Line will be in excess of 500
[44:13] the Top Line will be in excess of 500 crores Pat would be in excess of wow 250
[44:17] crores Pat would be in excess of wow 250 crores for them um and these are folks
[44:21] crores for them um and these are folks who are actually helping uh small
[44:24] who are actually helping uh small midsize
[44:25] midsize businesses um in how and they're doing
[44:27] businesses um in how and they're doing it in a scaled they're doing it in a
[44:29] it in a scaled they're doing it in a scaled way or like is it like more one
[44:31] scaled way or like is it like more one to one so the largest for example uh
[44:35] to one so the largest for example uh such business coach uh you know who only
[44:38] such business coach uh you know who only does coaching
[44:39] does coaching specifically uh last year I think did
[44:42] specifically uh last year I think did 180 crores in Topline 120 crores in Pat
[44:46] 180 crores in Topline 120 crores in Pat my God right so he he kind of does an
[44:50] my God right so he he kind of does an MBA program for all of these
[44:53] MBA program for all of these entrepreneurs uh each entrepreneur pays
[44:55] entrepreneurs uh each entrepreneur pays about 10 lakh Rupees for that program
[44:57] about 10 lakh Rupees for that program and one batch uh is of 350 students my
[45:03] and one batch uh is of 350 students my God so there is a there is a great
[45:05] God so there is a there is a great opportunity in people who can who have a
[45:08] opportunity in people who can who have a way to communicate uh to these small and
[45:10] way to communicate uh to these small and midsize businesses and help them uh
[45:13] midsize businesses and help them uh understand on how to build teams how to
[45:16] understand on how to build teams how to uh measure monitor business performance
[45:19] uh measure monitor business performance how to automate how to do sales uh
[45:22] how to automate how to do sales uh that's another interesting opportunity
[45:24] that's another interesting opportunity which actually is coming up uh quite
[45:26] which actually is coming up uh quite well here yeah interesting interesting
[45:29] well here yeah interesting interesting sir would love to uh you know like
[45:31] sir would love to uh you know like changing trajectory and you know uh I
[45:34] changing trajectory and you know uh I know I'm also conscious of your time you
[45:36] know I'm also conscious of your time you know would love to kind of you know
[45:38] know would love to kind of you know understand how you know like how you
[45:40] understand how you know like how you have evolved as a Founder when you were
[45:42] have evolved as a Founder when you were in your zero to1 Journey let's say from
[45:44] in your zero to1 Journey let's say from you know 96 to 2009 right then
[45:47] you know 96 to 2009 right then essentially 1 200 where essentially you
[45:49] essentially 1 200 where essentially you were uh you know 2009 10 onwards till 2
[45:54] were uh you know 2009 10 onwards till 2 till you were listed maybe and now you
[45:56] till you were listed maybe and now you know obviously running such a large uh
[45:58] know obviously running such a large uh 14,000 CR market cap you know hugely
[46:00] 14,000 CR market cap you know hugely profitable listed company right so how
[46:02] profitable listed company right so how does you know like how has how have you
[46:04] does you know like how has how have you evolved and you know like how can
[46:06] evolved and you know like how can Founders also you know like make that
[46:08] Founders also you know like make that shift you know as as their companies
[46:11] shift you know as as their companies grow in fact um the early days let's say
[46:14] grow in fact um the early days let's say the first 10 12 years of our journey uh
[46:17] the first 10 12 years of our journey uh we were more like uh you know people who
[46:21] we were more like uh you know people who would say you know break things today
[46:24] would say you know break things today build it tomorrow again break it day
[46:27] build it tomorrow again break it day after tomorrow then again build it again
[46:29] after tomorrow then again build it again so it was more like you you were really
[46:32] so it was more like you you were really working on the go right as things used
[46:35] working on the go right as things used to come uh you would want to you know
[46:38] to come uh you would want to you know make changes do things uh do experiments
[46:41] make changes do things uh do experiments figure out what is working what is not
[46:43] figure out what is working what is not working at a fast pace and at that time
[46:46] working at a fast pace and at that time therefore uh the importance of building
[46:48] therefore uh the importance of building up processes systems uh teams
[46:52] up processes systems uh teams hierarchies that is something which was
[46:54] hierarchies that is something which was very very low uh it was a very very high
[46:57] very very low uh it was a very very high Touch model where we were deeply
[46:59] Touch model where we were deeply involved in every single thing we wanted
[47:01] involved in every single thing we wanted to meet lots of customers spend time
[47:04] to meet lots of customers spend time with our team members you know
[47:06] with our team members you know understand each and every word that uh
[47:08] understand each and every word that uh we used to hear yeah what is being said
[47:11] we used to hear yeah what is being said what is not being said uh right uh and
[47:14] what is not being said uh right uh and try and understand what's the underlying
[47:17] try and understand what's the underlying uh problem that one really needs to uh
[47:19] uh problem that one really needs to uh solve for so you know those were things
[47:22] solve for so you know those were things that we used to do at that point in time
[47:24] that we used to do at that point in time a lot of focus was on being fr Google uh
[47:28] a lot of focus was on being fr Google uh cost Consciousness was
[47:30] cost Consciousness was inbuilt uh tons of focus only on you
[47:33] inbuilt uh tons of focus only on you know selling selling selling in that
[47:36] know selling selling selling in that sense um the way we used to run business
[47:39] sense um the way we used to run business was like from morning till late night uh
[47:43] was like from morning till late night uh right too deeply involved into the
[47:46] right too deeply involved into the operations uh and then suddenly uh you
[47:49] operations uh and then suddenly uh you know when we raised capital from in
[47:51] know when we raised capital from in capital uh at the end of
[47:53] capital uh at the end of 20 and they set up a board for us in
[47:57] 20 and they set up a board for us in 2009 uh when the board really came in
[48:00] 2009 uh when the board really came in and saw the way we were working uh I
[48:02] and saw the way we were working uh I think one transition really that came in
[48:05] think one transition really that came in there for us is they actually uh uh you
[48:09] there for us is they actually uh uh you know convinced us and also taught us the
[48:13] know convinced us and also taught us the importance of measurement and monitoring
[48:18] importance of measurement and monitoring so one question that was asked is that
[48:20] so one question that was asked is that if you don't uh get to come to office
[48:23] if you don't uh get to come to office for the next 30 days right will this
[48:25] for the next 30 days right will this business still run the way it is running
[48:27] business still run the way it is running at this point in time right and the
[48:30] at this point in time right and the answer was no uh for that matter so he
[48:32] answer was no uh for that matter so he said okay uh you know how do you really
[48:36] said okay uh you know how do you really go ahead and build that um and we we
[48:38] go ahead and build that um and we we learned a lot from the experience of our
[48:40] learned a lot from the experience of our board
[48:42] board member on how to do uh measurement right
[48:47] member on how to do uh measurement right uh where is it that we can actually
[48:49] uh where is it that we can actually measure every bit of data where is it
[48:51] measure every bit of data where is it that we need needed to have proxies of
[48:52] that we need needed to have proxies of data so that how do you control uh or
[48:57] data so that how do you control uh or understand what's happening inside the
[48:58] understand what's happening inside the business using data that came in
[49:00] business using data that came in interesting and also came in an exercise
[49:03] interesting and also came in an exercise of uh you know building up a
[49:06] of uh you know building up a professional management team uh
[49:08] professional management team uh alongside us so you know hiding of
[49:11] alongside us so you know hiding of senior folks why do you need senior
[49:13] senior folks why do you need senior folks what role will they come in and
[49:15] folks what role will they come in and play what is it that we need to do as
[49:17] play what is it that we need to do as Founders to get them comfortable to uh
[49:19] Founders to get them comfortable to uh sort of start coming in and building
[49:21] sort of start coming in and building this out this is what happened around
[49:23] this out this is what happened around you know 2010 to about let's say 20 19
[49:27] you know 2010 to about let's say 20 19 when we sort of listed uh and during
[49:30] when we sort of listed uh and during this time period you know things kept on
[49:33] this time period you know things kept on evolving for us uh about three years
[49:36] evolving for us uh about three years before we listed um you know we
[49:38] before we listed um you know we internally decided that uh we will have
[49:41] internally decided that uh we will have to go ahead and look at a potential
[49:42] to go ahead and look at a potential listing so why don't we start behaving
[49:44] listing so why don't we start behaving like a public listed company even though
[49:46] like a public listed company even though we are not that's interesting so we
[49:49] we are not that's interesting so we started to uh you know prepare data
[49:52] started to uh you know prepare data publish it uh quarterly monthly amazing
[49:56] publish it uh quarterly monthly amazing set up an internal board and only for
[49:58] set up an internal board and only for internal review only for internal review
[50:01] internal review only for internal review it was as if we were you know putting it
[50:03] it was as if we were you know putting it out for the public investors Al together
[50:05] out for the public investors Al together we set up an internal board which had uh
[50:08] we set up an internal board which had uh people from our own uh business as well
[50:10] people from our own uh business as well as some board members plus some advisers
[50:13] as some board members plus some advisers that we had gotten on board and they
[50:15] that we had gotten on board and they would question us uh on the performance
[50:18] would question us uh on the performance on the data so we did that we built up a
[50:22] on the data so we did that we built up a fairly uh decent size legal and
[50:25] fairly uh decent size legal and compliance team Al together uh which
[50:28] compliance team Al together uh which would ensure that we stay uh a company
[50:32] would ensure that we stay uh a company which has highest levels of corporate
[50:34] which has highest levels of corporate governance absolutely
[50:36] governance absolutely compliant uh so in a way we prepared for
[50:40] compliant uh so in a way we prepared for about three
[50:41] about three years uh you know before we really went
[50:44] years uh you know before we really went to public and and therefore when a lot
[50:47] to public and and therefore when a lot of people ask us a question how has your
[50:49] of people ask us a question how has your life changed after going public frankly
[50:52] life changed after going public frankly nothing has changed for us
[50:54] nothing has changed for us literally right absolutely nothing this
[50:57] literally right absolutely nothing this is what we had been doing yeah all along
[51:01] is what we had been doing yeah all along and you will get to see the kind of or
[51:03] and you will get to see the kind of or the volume of data that we really share
[51:05] the volume of data that we really share with the public market
[51:06] with the public market investors uh is one of the most
[51:09] investors uh is one of the most substantial data sets that anybody has
[51:11] substantial data sets that anybody has ever seen yeah fairly transparent
[51:15] ever seen yeah fairly transparent because this is what is happening
[51:16] because this is what is happening actually inside the business day in day
[51:18] actually inside the business day in day out we absolutely comfortable with that
[51:20] out we absolutely comfortable with that so that is how life has been but now yes
[51:23] so that is how life has been but now yes when we looking at for example
[51:27] when we looking at for example solving for another problem this is not
[51:30] solving for another problem this is not a grounds up uh buildup that we are
[51:33] a grounds up uh buildup that we are doing for the first time we acquired a
[51:35] doing for the first time we acquired a business yeah acquired a business which
[51:37] business yeah acquired a business which is a family run business done for last
[51:40] is a family run business done for last 27 years now how do we convert that
[51:45] 27 years now how do we convert that business into a high growth uh business
[51:48] business into a high growth uh business which will stay relevant for the next 50
[51:50] which will stay relevant for the next 50 years yeah that's a challenge right
[51:54] years yeah that's a challenge right that's that's something that uh we are
[51:56] that's that's something that uh we are learning at this moment of
[51:57] learning at this moment of time uh when we looking at uh investing
[52:01] time uh when we looking at uh investing in different kinds of business
[52:03] in different kinds of business opportunities we are actually spending
[52:05] opportunities we are actually spending time on foreseeing what is going to
[52:07] time on foreseeing what is going to happen five years down the line 10 years
[52:09] happen five years down the line 10 years down the line and how we can be prepared
[52:11] down the line and how we can be prepared to to face uh you know those changes
[52:14] to to face uh you know those changes which are going to come in so uh you
[52:16] which are going to come in so uh you know the the journey in that sense has
[52:19] know the the journey in that sense has changed what we do uh obviously the
[52:23] changed what we do uh obviously the nature of that has gone ahead and
[52:25] nature of that has gone ahead and changed uh over these three faces that
[52:28] changed uh over these three faces that you
[52:29] you see very interesting how it's you know
[52:31] see very interesting how it's you know like it's almost involed evolved from
[52:33] like it's almost involed evolved from doing an executing to then leading to
[52:37] doing an executing to then leading to now like like you know almost becoming
[52:39] now like like you know almost becoming an investor in your own company and kind
[52:40] an investor in your own company and kind of reviewing the data and building of
[52:42] of reviewing the data and building of those processes right so uh super
[52:45] those processes right so uh super interesting I think uh you know would
[52:47] interesting I think uh you know would love to you know we have this section
[52:49] love to you know we have this section where uh you know we do a rapid fire and
[52:51] where uh you know we do a rapid fire and we try to know the person behind the
[52:53] we try to know the person behind the business right so uh uh you know so I
[52:56] business right so uh uh you know so I ask you like a few questions and uh you
[52:58] ask you like a few questions and uh you know like like I mean like more on the
[53:01] know like like I mean like more on the personal side and would love to you know
[53:03] personal side and would love to you know like know more about you you know which
[53:05] like know more about you you know which maybe like uh like public markets or you
[53:08] maybe like uh like public markets or you know people generally don't know right
[53:10] know people generally don't know right so because in case otherwise if you
[53:12] so because in case otherwise if you would have asked any rapid fire stuff my
[53:14] would have asked any rapid fire stuff my only response would have been Karen
[53:16] only response would have been Karen please uh give me some time let me think
[53:18] please uh give me some time let me think through it and come
[53:22] back amazing so uh so what's the best
[53:25] back amazing so uh so what's the best way for you to unite
[53:27] way for you to unite I love to
[53:29] I love to sleep
[53:30] sleep wow that that's such an honest that's
[53:33] wow that that's such an honest that's such an honest answer like like how many
[53:35] such an honest answer like like how many hours would you uh sleep on a daily
[53:37] hours would you uh sleep on a daily basis generally about 7 hours uh on
[53:41] basis generally about 7 hours uh on weekdays uh Sundays I will take another
[53:44] weekdays uh Sundays I will take another let's say three-hour nap in the
[53:46] let's say three-hour nap in the afternoon
[53:47] afternoon wow that that's that's
[53:50] wow that that's that's awesome one thing people don't know
[53:52] awesome one thing people don't know about
[53:54] about you uh a lot of people people in the
[53:56] you uh a lot of people people in the professional world would not know my uh
[54:00] professional world would not know my uh love for music uh all kinds of music and
[54:04] love for music uh all kinds of music and and this is not just Hindi music or you
[54:06] and this is not just Hindi music or you know western songs but uh asames Bengali
[54:11] know western songs but uh asames Bengali Gujarati Tamil
[54:13] Gujarati Tamil Telugu um Persian music wow so I would
[54:18] Telugu um Persian music wow so I would listen to a lot of these songs I would
[54:20] listen to a lot of these songs I would love to read about uh people who write
[54:24] love to read about uh people who write these songs I'm a big fan of by the way
[54:27] these songs I'm a big fan of by the way uh jagjit Singh and all the shers who
[54:29] uh jagjit Singh and all the shers who written uh those
[54:32] written uh those beautiful you know nazms and shies uh so
[54:36] beautiful you know nazms and shies uh so that's something a lot of people don't
[54:38] that's something a lot of people don't know of you know anybody who gets to see
[54:40] know of you know anybody who gets to see it will say romantic
[54:43] it will say romantic VI but uh yeah that that's something
[54:47] VI but uh yeah that that's something that not many people know of amazing I'm
[54:50] that not many people know of amazing I'm also big shivkumar bateli fan so you
[54:53] also big shivkumar bateli fan so you know like yeah love his
[54:54] know like yeah love his poetry correct great uh what's your
[54:57] poetry correct great uh what's your favorite travel destination in
[55:00] favorite travel destination in India by the way I'm not very fond of
[55:02] India by the way I'm not very fond of traveling so but still uh if I ever have
[55:05] traveling so but still uh if I ever have to travel I travel to my hometown that I
[55:08] to travel I travel to my hometown that I love that
[55:09] love that place
[55:11] place amazing uh what are your three favorite
[55:15] amazing uh what are your three favorite foods okay interesting uh dalati for one
[55:20] foods okay interesting uh dalati for one uh staying through to your marari roots
[55:23] uh staying through to your marari roots ah this is like you know wherever I see
[55:26] ah this is like you know wherever I see but I'm just on to it uh I just can't
[55:29] but I'm just on to it uh I just can't leave it uh second uh is I love to have
[55:34] leave it uh second uh is I love to have fresh Malay uh you know from cow milk uh
[55:39] fresh Malay uh you know from cow milk uh with the bread toast basically so that's
[55:43] with the bread toast basically so that's you find this amazing uh you know
[55:46] you find this amazing uh you know there's this amazing company in Kolkata
[55:48] there's this amazing company in Kolkata you know which does this you know like
[55:49] you know which does this you know like on the on the roadside it serve chai and
[55:52] on the on the roadside it serve chai and this Malay toast with sugar K Duan yeah
[55:55] this Malay toast with sugar K Duan yeah yeah yeah i' I've had it there uh I I
[55:58] yeah yeah i' I've had it there uh I I love that place also and then third is U
[56:02] love that place also and then third is U you know at home we make uh this badam
[56:06] you know at home we make uh this badam kaala and ATA halwa which is which is
[56:09] kaala and ATA halwa which is which is almost like semi liquid it's not very
[56:12] almost like semi liquid it's not very solid the way you get Hala uh that's the
[56:14] solid the way you get Hala uh that's the other it's almost like like dripping in
[56:16] other it's almost like like dripping in ghee correct yeah yeah absolutely
[56:19] ghee correct yeah yeah absolutely absolutely that's the third thing
[56:22] absolutely that's the third thing amazing so my wife is also marwari and
[56:24] amazing so my wife is also marwari and you know like I can totally relate to
[56:25] you know like I can totally relate to all these three dishes
[56:28] all these three dishes yes great what's the best way for you to
[56:30] yes great what's the best way for you to spend the
[56:32] spend the weekend that weekends generally spent uh
[56:36] weekend that weekends generally spent uh as I said 3 hours of sleep uh in the
[56:38] as I said 3 hours of sleep uh in the afternoon um and then mostly with kids
[56:43] afternoon um and then mostly with kids um or you know other family members who
[56:46] um or you know other family members who are there so there are four of us four
[56:48] are there so there are four of us four brothers here uh who stay close by so I
[56:52] brothers here uh who stay close by so I think the time is spent uh amongst all
[56:54] think the time is spent uh amongst all of us together amazing like generally in
[56:58] of us together amazing like generally in the company do you have a 5day working
[56:59] the company do you have a 5day working or a sixday working a 5day working but I
[57:02] or a sixday working a 5day working but I work six days uh Saturdays work from
[57:05] work six days uh Saturdays work from home for me so but yeah I only get
[57:07] home for me so but yeah I only get Sundays as the time got it got it what's
[57:11] Sundays as the time got it got it what's your uh favorite consumer internet
[57:13] your uh favorite consumer internet company from
[57:16] India I don't know U if it's a consumer
[57:21] India I don't know U if it's a consumer internet company but I I am a big fan of
[57:23] internet company but I I am a big fan of Zoho yeah the way it was built uh and I
[57:26] Zoho yeah the way it was built uh and I mentioned that earlier uh you know
[57:29] mentioned that earlier uh you know that's an ideal example of how an
[57:32] that's an ideal example of how an entrepreneur can go about building up a
[57:34] entrepreneur can go about building up a business without any additional uh
[57:38] business without any additional uh external Capital yeah solid business
[57:42] external Capital yeah solid business Global
[57:43] Global business uh and it solves for real
[57:46] business uh and it solves for real problems that these businesses have at
[57:48] problems that these businesses have at scale yeah yeah I I think then my you
[57:52] scale yeah yeah I I think then my you know next question is also kind of
[57:53] know next question is also kind of answered I I wanted to ask you who's
[57:55] answered I I wanted to ask you who's your favorite Indian CEO
[57:57] your favorite Indian CEO but no no no no no no so that's another
[57:59] but no no no no no no so that's another guy by the way if you were to ask about
[58:02] guy by the way if you were to ask about an individual then this is going to be
[58:06] bakya uh again this guy you know he has
[58:10] bakya uh again this guy you know he has I think exited three companies already
[58:12] I think exited three companies already yeah yeah he built uh he does not come
[58:16] yeah yeah he built uh he does not come to the four uh at every single place uh
[58:20] to the four uh at every single place uh you know he will keep it to himself uh
[58:22] you know he will keep it to himself uh he's now building up Zeta uh which is
[58:25] he's now building up Zeta uh which is another multibillion business that he's
[58:27] another multibillion business that he's already created this guy is
[58:32] phenomenal amazing and you know finally
[58:35] phenomenal amazing and you know finally like what would be your one advice for
[58:37] like what would be your one advice for early stage Founders who looking at
[58:39] early stage Founders who looking at building in the B2B space or SAS space
[58:41] building in the B2B space or SAS space in
[58:43] in India yeah I I I think uh the the core
[58:47] India yeah I I I think uh the the core philosophy about value cost is is one
[58:50] philosophy about value cost is is one thing that I would always want to share
[58:52] thing that I would always want to share with every
[58:53] with every entrepreneur uh I also do that because
[58:56] entrepreneur uh I also do that because that's our DNA right if you were
[58:59] that's our DNA right if you were building up a business where there was
[59:02] building up a business where there was the difference between value and cost
[59:03] the difference between value and cost was less I don't think we have the DNA
[59:05] was less I don't think we have the DNA of building up a successful business
[59:06] of building up a successful business like that yeah yeah maybe it comes from
[59:09] like that yeah yeah maybe it comes from the fact uh there but uh what it does to
[59:13] the fact uh there but uh what it does to entrepreneurs is that you build up a
[59:15] entrepreneurs is that you build up a business for next 50 years 70 years 100
[59:18] business for next 50 years 70 years 100 years uh because it is based on that
[59:20] years uh because it is based on that basic principle uh money is not the only
[59:25] basic principle uh money is not the only way of building up
[59:26] way of building up business right money can become an
[59:29] business right money can become an enabler in solving some of the problems
[59:31] enabler in solving some of the problems in building up the business but um you
[59:34] in building up the business but um you know when people flaunt that I have
[59:36] know when people flaunt that I have raised x amount of capital and therefore
[59:38] raised x amount of capital and therefore I am successful I think that is
[59:41] I am successful I think that is something that uh I would advise
[59:43] something that uh I would advise everybody to
[59:44] everybody to avoid got it like and instead of
[59:47] avoid got it like and instead of celebrating the raising Capital you
[59:48] celebrating the raising Capital you celebrate actually execution and people
[59:50] celebrate actually execution and people who built large businesses yeah you said
[59:53] who built large businesses yeah you said you know I've acquired my H 100th
[59:54] you know I've acquired my H 100th customer I've acquired my thousandth
[59:56] customer I've acquired my thousandth customer I've acquired my 10,000
[59:58] customer I've acquired my 10,000 customer I think that calls for a much
[01:00:00] customer I think that calls for a much bigger celebration than I raised $50
[01:00:03] bigger celebration than I raised $50 million yeah yeah amazing uh thank you
[01:00:06] million yeah yeah amazing uh thank you so much sir you know for giving us your
[01:00:08] so much sir you know for giving us your time you know finally I I couldn't let
[01:00:10] time you know finally I I couldn't let you go you know without you know having
[01:00:12] you go you know without you know having like some thoughts of yours on
[01:00:14] like some thoughts of yours on accelerate as well right so at
[01:00:16] accelerate as well right so at accelerate you know we're looking to
[01:00:17] accelerate you know we're looking to help young Founders early stage Founders
[01:00:20] help young Founders early stage Founders learn from some of the best Founders in
[01:00:21] learn from some of the best Founders in the country right so like what they
[01:00:23] the country right so like what they generally do you think about the idea
[01:00:25] generally do you think about the idea you know like and where do you think you
[01:00:27] you know like and where do you think you know like we can add value to Young
[01:00:30] know like we can add value to Young Founders the one specific reason why I I
[01:00:35] Founders the one specific reason why I I thought it would be useful to be a part
[01:00:37] thought it would be useful to be a part of accelerate uh because I generally
[01:00:39] of accelerate uh because I generally don't tend to uh be a part of these uh
[01:00:43] don't tend to uh be a part of these uh groupings is because uh when you look at
[01:00:46] groupings is because uh when you look at people behind accelerate these are all
[01:00:49] people behind accelerate these are all folks whose Central philosophy is built
[01:00:52] folks whose Central philosophy is built around creating value for customers yeah
[01:00:56] around creating value for customers yeah these are all folks who would never
[01:00:58] these are all folks who would never Advocate to a Founder to go back and
[01:01:00] Advocate to a Founder to go back and raise tons of capital they would always
[01:01:02] raise tons of capital they would always advise people and guide them on how to
[01:01:05] advise people and guide them on how to build a uh suain business right which
[01:01:08] build a uh suain business right which can be grown at a fast pace and yet does
[01:01:11] can be grown at a fast pace and yet does not require uh the kind of capital which
[01:01:14] not require uh the kind of capital which people would look for now this is
[01:01:16] people would look for now this is something which is very different from a
[01:01:19] something which is very different from a typical VC uh that you would get to see
[01:01:21] typical VC uh that you would get to see in these markets today because see each
[01:01:23] in these markets today because see each VC will come back with a timeline of
[01:01:25] VC will come back with a timeline of seven years 8 years 10 years in which
[01:01:27] seven years 8 years 10 years in which they will have to exit their funds so
[01:01:29] they will have to exit their funds so they have a fiduciary responsibility to
[01:01:31] they have a fiduciary responsibility to their LPS which they have to uh deliver
[01:01:34] their LPS which they have to uh deliver to and therefore M it's their job to go
[01:01:37] to and therefore M it's their job to go and always push Founders to create a
[01:01:39] and always push Founders to create a business faster bigger in a smaller time
[01:01:41] business faster bigger in a smaller time period so uh but accelate doesn't have
[01:01:44] period so uh but accelate doesn't have that kind of a limitation so which is
[01:01:46] that kind of a limitation so which is very very exciting and people uh behind
[01:01:49] very very exciting and people uh behind it have actually done work on the ground
[01:01:52] it have actually done work on the ground uh so they know what the Real Pain
[01:01:54] uh so they know what the Real Pain points of some of these uh early stage
[01:01:56] points of some of these uh early stage entrepreneurs and Founders would be uh
[01:01:59] entrepreneurs and Founders would be uh and therefore they are in a unique
[01:02:01] and therefore they are in a unique capacity to assist
[01:02:03] capacity to assist them yeah yeah I mean I couldn't have
[01:02:06] them yeah yeah I mean I couldn't have said it better myself uh you know thank
[01:02:08] said it better myself uh you know thank you so much sir you know really enjoyed
[01:02:10] you so much sir you know really enjoyed your time you know super excited to keep
[01:02:12] your time you know super excited to keep following your journey keep learning
[01:02:14] following your journey keep learning from you you know as I said I think
[01:02:15] from you you know as I said I think indart journey is super inspiring for
[01:02:17] indart journey is super inspiring for thousands of young Founders in the
[01:02:19] thousands of young Founders in the country and you know we can't you know
[01:02:21] country and you know we can't you know wait to keep learning from you and you
[01:02:22] wait to keep learning from you and you know keep following you thank you thank
[01:02:24] know keep following you thank you thank you so much sir thank you so much Karen
[01:02:27] you so much sir thank you so much Karen I really appreciate this

https://www.youtube.com/watch?v=u1yranECf-4

Summary

TL;DR — Brijesh Agrawal, co-founder of IndiaMART, discusses the company's journey from its inception in 1996 to becoming a ₹14,000 crore listed tech company. He highlights their strategy of building profitably from day one, leveraging early SEO expertise, and focusing on customer obsession and data to achieve success without massive external funding.

Key points

• IndiaMART began in 1996, shortly after the internet's launch in India, with a vision to connect businesses online, even when internet penetration was extremely low.

• The company prioritized profitability from the outset, a core principle inherited from their business-minded family background, which guided their approach to customer acquisition and service.

• Early on, IndiaMART mastered Search Engine Optimization (SEO), making their links appear prominently for product searches, which significantly reduced buyer acquisition costs.

• The business pivoted from an initial focus on international exports to a domestic B2B marketplace model around 2009, eventually finding strong product-market fit by 2014.

• Key to their success has been an obsession with aggregating vast amounts of accurate and updated data on sellers and their products, a strategy that differentiated them from competitors.

• Agrawal emphasizes the importance of a high value-to-cost ratio in business, suggesting that focusing on problems where this gap is significant allows for patient, capital-efficient growth.

Takeaway — Building a sustainable, customer-obsessed business with a focus on profitability and data, even in challenging markets, is key to long-term success.