Synopsis: A reclusive ace investor deploys ₹650 crore into a leading B2B marketplace platform, signaling strong long-term conviction despite slowing growth, muted sentiment, and ongoing concerns over near-term business momentum.
A veteran investor has quietly built a significant position in one of India’s leading B2B marketplaces, signalling long-term confidence even as the company navigates a period of moderating growth.
With a market cap of Rs. 12,616 Crore, the share of Indiamart Intermesh Ltd. is trading at a price of Rs. 2103 per share, which is 0.09 percent down from its previous closing price of Rs. 2104.95. Tae stock has a P/E ratio of 20.8.
Nalanda Capital Bets Big on IndiaMART
Pulak Prasad, founder of Nalanda Capital, has acquired approximately a 5.14% stake in IndiaMART InterMESH, investing close to Rs. 650 crore in the company. The move marks a notable vote of confidence from one of India’s most respected long-term investors, known for his concentrated, high-conviction bets on quality businesses.
The investment by Nalanda Capital comes at an interesting time. IndiaMART has been reporting moderated growth in recent quarters, with standalone revenue from operations rising 9% YoY to Rs. 368 crore in Q3 FY26. On a consolidated basis, revenue grew 11% YoY to Rs. 402 crore, suggesting the core B2B marketplace business continues to expand, albeit at a more measured pace compared to earlier years.
Paying Suppliers Under Pressure
One of the more closely watched metrics, paying suppliers, declined by 1,000 during Q3 FY26, settling at 221K. While the YoY growth remains modest at 3%, the sequential dip reflects some near-term friction in supplier additions. However, the annualised revenue per paying supplier (ARPU) rose 6% YoY to Rs. 67,000, suggesting that existing suppliers are spending more, which partially offsets the headcount pressure.
Profit and Cash Flows Stay Resilient
Despite EBITDA declining 6% YoY on a standalone basis to Rs. 136 crore, net profit surged 65% YoY to Rs. 206 crore, aided by other income. Consolidated net profit came in at Rs. 188 crore, up 56% YoY. Cash flow from operations stood at Rs. 129 crore on a consolidated basis, while deferred revenue climbed 17% YoY to Rs. 1,775 crore, indicating healthy future revenue visibility.
Collections and Collections Growth Holding Up
Consolidated collections from customers rose 15% YoY to Rs. 426 crore in Q3 FY26, reflecting continued demand for the platform’s subscription-based model. The deferred revenue pool of Rs. 1,775 crore provides a strong revenue buffer for quarters ahead.
Why Nalanda May Have Seen Value Here
IndiaMART holds a dominant position across roughly 98,000 product categories, with 42 million active buyers, 8.7 million supplier storefronts, and 128 million live product listings. Its cash and investments on the consolidated balance sheet stood at Rs. 3,051 crore as of Q3 FY26, making it a deeply cash-rich business with limited capital expenditure needs. For a patient, long-term investor like Nalanda Capital, the combination of a dominant market position, strong balance sheet, and a depressed stock price likely made the entry point attractive.
About the Company
IndiaMART InterMESH is India’s largest online B2B marketplace, connecting buyers and suppliers across a wide range of product categories. Founded in 1999, the company serves 42 million active buyers and over 221,000 paying suppliers through its platform. Listed on Indian stock exchanges, it generates revenue primarily through supplier subscriptions and has also built a growing ecosystem of accounting and business enablement products through subsidiaries such as Busy Infotech and Livekeeping Technologies.
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