Matrimony.com Files For IPO The Second Time

Matchmaking and marriage services provider Matrimony.com has filed draft papers with the market regulator for an initial public offering (IPO) in its second attempt at going public.

The parent company of the Bharat Matrimony is looking to raise up to Rs 130 crore by way of fresh issue, according to its Draft Red Herring Prospectus filed with the Securities and Exchange Board of India (SEBI). The IPO will also see existing investors offload up to 37.6 lakh shares of face value Rs 5 each.

Matrimony.com had earlier filed draft papers in August 2015, but the approval from SEBI expired in December 2016 after the company delayed its IPO citing weaker market conditions.

The largely unorganised and fragmented Indian marriage services industry was worth around Rs 36.8 crore in fiscal 2016, with friends and family acting as the more popular channel for matchmaking. The online space accounts for around 6 percent of the total marriages, according to a KPMG Report cited in the prospectus.

The Chennai-based company sees a potential opportunity to capitalise on the country's growing "marriageable" population of over 10 crore below the age of 35.

Majority of the funds raised will go towards repayment of overdraft facilities to HDFC Bank Ltd., purchasing land for a new office in Chennai, and advertising expenses, the draft papers said.

InfoEdge, which operates jeevansathi.com, naukri.com, 99acres and also holds a stake in food startup Zomato, is the only other peer to be listed in India. The other competitors in the space are Shaadi.com, Matrimonialsindia.com and Weddingsutra.com.

Matrimony.com generated total consolidated revenue Rs 293 crore and a profit of Rs 43.7 crore in fiscal 2017, according to the draft papers. Its revenue is derived from its two main businesses – matchmaking, and marriage services. The matchmaking services has a paid subscription-based revenue model, while the marriage services segment charges for specific services.

However, every match they make is a customer lost.

While matchmaking continues to be the core business, Matrimony.com is also eyeing expansion in the marriage services space with catering, decoration, venue, gifts and photography, the draft papers added.

Axis Capital Ltd. and ICICI Securities Ltd. have been appointed as the book running lead managers to the issue and Karvy Computershare Pvt. Ltd. as the registrar.