IndiaMart Eyes Double-Digit Growth In Standalone Collections In H2FY26

IndiaMart InterMesh, India's largest online B2B marketplace, is targeting a double-digit growth in standalone collections in the second half of the financial year 2025-26, even as it navigates significant short-term cost increases from its investments in Artificial Intelligence (AI), according to the company’s CEO, Dinesh Agarwal.

“We have been slowing our net customer addition, and that is causing our collections to be in this range of 8% to 10%. And we will probably see if we can move up to the double digits in the second half. But that's what I can say right now,” Agarwal said during a conversation with NDTV Profit on Monday.

Indiamart’s standalone collections from customers grew 8% year-on-year (YoY) to Rs 365 crore in Q2FY26.

Agarwal asserted that the company's Average Revenue Per User (ARPU) is on a solid footing.

“Our ARPU numbers have been growing between 6% to 8% historically, barring some quarters here and there. That's the guidance we have given, that ARPUs, we have been able to consistently increase at 6% to 8%,” the top executive said.

This growth is supported by an improving platform experience, which has led to a rise in both unique business inquiries and the rate of repeat customers, he said.

Indiamart is heavily investing in AI to enhance operational efficiency and customer experience. Agarwal highlighted the automation of the platform’s three crore monthly calls among the buyers, sellers, and Indiamart as a key focus area.

“If we can automate these calls and generate insights, it will create significant advantages for both buyers and sellers,” he said.

Using AI to analyse call transcripts and PDFs will help in creating detailed, structured specifications for B2B products. This is expected to significantly improve the seller's listing quality and the overall marketplace experience, Agarwal emphasised.

He explained that while the long-term goal of using AI is to reduce costs, the current phase of experimentation is actually increasing expenses.

“Overall, longer duration, if you see, maybe two, three years down the line, the cost reduction will definitely come. But currently, we are experimenting with so many models that are actually going to increase the cost because of the investment in the AI,” the CEO added.

When questioned about the rising competition from Chinese B2B websites gaining access to Indian suppliers, Agarwal maintained a collaborative stance. He downplayed the direct threat, stating that the industry as a whole benefits from open trade relations.

"We will probably partner with whosoever wants to do any business in India," he said, welcoming potential players to advertise on the Indiamart platform. He also refuted speculations about the company’s joint venture or tie-up with any Chinese player.

Shares of Indiamart Intermesh closed 3.76% higher at Rs 2,460 apiece on the NSE, while the benchmark Nifty50 ended with a gain of 0.66% at 25,966.05.