IndiaMART InterMESH entered into an agreement to invest 10% of the share capital (on fully diluted basis) of Zimyo Consulting (referred as Zimyo) for a cash consideration of Rs 17.01 crore.
The investment will be executed within a period of 45 days. As part of the funding round, IndiaMART InterMESH intends to invest upto Rs 17.01 crore approximately in Zimyo in the following manner - a) subscribing of 1,870 Series A Compulsorily Convertible Preference Shares (CCPS) of face value of Rs 10 per CCPS at a premium of Rs 86,306 per CCPS aggregating to approximately Rs 16.14 crore; and, b) purchase of 100 equity shares of face value of Rs 10 per equity share at a premium of Rs 86,306 from existing shareholders, aggregating to approximately Rs 0.86 crore.
Zimyo is engaged in a business of offering SaaS-based human resource management software for the companies. It allows users to carry out critical HR processes including recruitment and onboarding, payroll management, performance management and time & attendance management. It also includes employee benefits modules which offers salary advance, personal loan and health & term insurance to employees. The total turnover of Zimyo for the financial year ended 31 March 2021 stood at Rs 0.8 crore.
Since, one of the Independent Director of the company holds 0.16% of the paid up capital of Zimyo on fully diluted basis, the transaction has been treated as related party as on the date of this investment. IndiaMART InterMESH has invested in companies such as Vyapar, Bizom, Shipway, Legistify, Superprocure, Aerchain, M1xchange, Easyecom, Fleetx, Industry Buying, Realbooks and BUSY. "All these investments are part of IndiaMART's long term objective of offering various software solutions which improve ease of doing business for Indian businesses and Enterprises," the press release highlighted.
The company's consolidated net profit declined 12.47% to Rs 70.20 crore on 8.35% rise in net sales to Rs 188.10 crore in Q3 December 2021 over Q3 December 2020.
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IndiaMART is India's largest online B2B marketplace for business products and services. IndiaMART makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions. IndiaMART provides ease and convenience to the buyers by offering a wide assortment of products and a responsive seller base while offering lead generation, lead management and payment solutions to its sellers.
Shares of IndiaMART InterMESH shed 1.91% to Rs 4,471.05 on BSE.
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