Thread by @jshilanjanm

How can long-term @IndiaMART investors not be delighted with @DineshAgarwal! 🙌🙌

The company released its Q4FY23 results some days back. So, I dived in & sliced through its numbers for the last 16 qtrs.

Here is all that I learned 👇

In last 4yrs:
👏 Revenue/month: Rs 85cr | Up ~90%
👏 Profit/month: Rs 25cr | Up ~278%
Just look at those numbers!

How did it happen?

Outstanding jump in paying subscribers:
🔆 72% up in the Top-8 cities (~1.1L users)- 20% up in last 1yr alone
🔆 62% up in the cities with >5L people (~53k users)- 25% up in last 1yr alone

It has also begun attracting paying subscribers in cities with <5L population.
🔆 50% up in last 2yrs alone (~37k users) - Up 27% in last 1yr alone

(Top 8 cities: Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Pune & Chennai)

More importantly, growth in paying users hasn’t meant lower quality.

It has been able to onboard big fishes & grow their biz.

Monthly revenue from Top-1% users is up by ~300% in last 4yrs! 🚀🚀
🔆 160% growth in monthly avg revenue per user (ARPU) to Rs 71k
🔆 Contribute 18% to revenues; 8% before

And revenue per month from Top-10% users is up by ~115% in the same time! 🚀
🔆 43% growth in monthly ARPU to Rs 19k
🔆 Contribute 47% to revenues; 40% before

Meanwhile, revenue from the Bottom-90% users too has grown by a decent ~68% in this time.
🔆 Contribute 35% to revenues; 52% before

The nos. validate the substantial growth in high-quality paying subscribers 👏👏👏

But, what’s driving such growth in revenues from Top-1% and Top-10% paying users?

It’s only possible if IndiaMart gets them more biz. And that’s exactly what IndiaMart cracked!

🔆 It raised its marketing by 5-6x in last 4yrs
🔆 This drove ~105% growth in buyers on the platform
🔆 This translated into more biz for paying subscribers
🔆 And that’s assured subscriber stickiness & growth

Such a beautiful story 🙌

And, it gets better.

It has also doubled down on hiring more tech & product folks.
👥 Up 65% in 4yrs, the team is now ~857 people big
🫰 Rs 2.9L monthly profit/head; Up ~130% in 4yrs
🙌 Profit/head has grown so strongly, despite team expansion

I’m in absolute admiration of @DineshAgarwal & @IndiaMART team for this flawless and grounded execution.

Under him, the 26yrs old internet company is truly killing it! 🚀🚀🚀

(Disc: Invested)

Biz News+ WA group: openinapp.co/6wrx2

PS: I post one such deep-dive daily 11am. If interested, do follow!

Note: This is a personal #investment thesis & not a #stock / #stockmarket rec.