IndiaMART InterMESH has deepened its bet on enterprise SaaS by investing nearly ₹65 crore in Fleetx Technologies’ latest funding round, even as it reported steady quarterly performance and outlined plans to counter evolving customer behaviour amid the rise of AI-driven search. The move underscores IndiaMART’s strategy to back AI- and IoT-led B2B software that enhances supply chain visibility.
Stake raised in Fleetx’s Series C round
IndiaMART subscribed to 4,630 Compulsory Convertible Preference Shares of Fleetx at a premium of ₹1,40,352 per share, taking its incremental investment to ₹64.98 crore. The transaction forms part of Fleetx’s ₹113 crore Series C round led by IndiaMART and BEENEXT’s Accelerate Fund. The capital will primarily fuel business expansion, with a portion providing secondary exits to early backers.
Post completion, expected within 30 days, IndiaMART’s fully diluted stake in Fleetx will rise to 25.80%. The company had earlier picked up smaller stakes in April and May 2025, reflecting a consistent conviction in the logistics-tech firm’s growth trajectory.
Fleetx develops AI- and IoT-enabled solutions across fleet management, transport ERP, fuel analytics, and video telematics. Since its last major fundraise in early 2022, the company has scaled its operations nearly fourfold. In FY25, it reported revenue of about ₹78 crore, up over 32% year-on-year, and surpassed ₹100 crore in annual recurring revenue. Its enterprise customer base now exceeds 2,000, including Ultratech Cement, Adani Group, Unilever, Godrej, Maersk, and Panasonic.
While losses widened in FY25 due to growth investments, Fleetx plans to deploy fresh capital to accelerate expansion, target profitability within a year, and prepare for a potential public listing in the medium term.
Q1 FY27 results highlight resilient core
IndiaMART posted consolidated revenue from operations of ₹414 crore in Q1 FY27, up 11% year-on-year. Net profit rose 12.2% to ₹172 crore, aided by operating performance and treasury income. EBITDA stood at ₹146 crore with a 35% margin, underscoring the strength of its subscription-led marketplace model. Cash and treasury investments totalled ₹3,553 crore.
Customer collections improved to ₹463 crore, and deferred revenue reached ₹2,014 crore, providing visibility for near-term earnings. BUSY Infotech, IndiaMART’s accounting software arm, reported a 47% year-on-year revenue increase to ₹36 crore, adding about 12,000 new licences during the quarter. The business is shifting from perpetual licences to a subscription model to drive recurring revenue and higher retention.
In a parallel push to serve MSMEs, the board approved the incorporation of IndiaMART Finance Limited, a wholly owned subsidiary that will partner with lenders to facilitate faster credit without deploying IndiaMART’s own balance sheet.
AI tailwinds and platform challenges
Despite the robust print, IndiaMART faced operational headwinds, losing around 1,850 paying suppliers in the quarter, attributed mainly to higher churn in its entry-level Silver plan. Management has deliberately slowed acquisition in this segment to improve cohort quality and optimise spending. Higher-tier Gold and Platinum cohorts continue to drive the bulk of revenue, lifting average revenue per user to around ₹69,000.
The platform also recorded a decline in Unique Business Enquiries. Executives cited tighter OTP-based bot filtering and shifting discovery patterns as users increasingly experiment with AI-powered search and large language models.
To bolster trust and transaction assurance, IndiaMART is enforcing mandatory OTP for buyers, scaling GST and bank verification for sellers, and rolling out a Buyer Payment Protection Programme offering purchase protection of up to ₹5 lakh.
Concurrently, the company is deploying AI to improve efficiency. An AI-driven voice system now handles more than 100,000 customer calls daily, improving conversions, reducing costs, and enabling round-the-clock support. AI tools are also accelerating content processing and platform governance.
Strategic direction
By increasing its stake in Fleetx, advancing embedded finance through partnerships, and integrating AI across operations, IndiaMART is reinforcing its long-term growth strategy while adapting to rapidly changing digital commerce and search dynamics.
