Online marriage services provider Matrimony.com Pvt Ltd, which owns Bharat Matrimony, said that its private equity investors would be making partial exits through the proposed Initial Public Offering (IPO).
The company has private equity investors including Mayfield, Bessemer and JPMorgan Asset Management, through CMDB II invested into its business. JP Morgan Asset Mangement has bought out stake in the company from Canaan Partners in 2015. The investors together hold over 40 per cent of stake in the company.
Bessemer is expected to sell around six per cent stake, retaining a small amount of shares in the company. Mayfield has around 10 per cent stake and JP Morgan has around 20 per cent stake, said Murugavel Janakiraman, promoter and managing director of Matrimony.com.
The offer for sale includes 14.6 lakh shares by Bessemer India Capital Holdings, 1.55 lakh equity shares by Mayfield and 16.83 lakh equity shares by CMDB II, apart from 3.84 lakh shares of Murugavel Janakiraman, the promoter of company and 82,834 shares by Indrani Jankiraman, a member of the promoter group.
While the primary offering in its previous DRHP was to the tune of Rs 350 crore, it has been brought down to Rs 130 crore in the second DRHP. Since the company has posted profit and will not be looking for more funding towards marketing from IPO, said Indrani Jankiraman.
"We are planning to construct an office in Chennai and Rs 40 crore out of the fund raising through IPO would be used for purchasing the land. Another Rs 20 crore would be used towards marketing expenses and around Rs 40 crore towards overdraft facility and the balance is for contingencies," said Janakiraman. At present, company has a few offices in Chennai, but they are rented.
He said the company has made a profit of Rs 43 crore even after a one-time IPO expenses of around Rs 4 crore. Considering that it is making profit. So the company has decided not to raise money for marketing, which has brought down the primary offering from previous Rs 350 crore to Rs 130 crore now. It may be noted that though the company filed a DRHP to raise a total of around Rs 550 crore last year, it did not complete the process owing to unfavourable market conditions.
Matrimony.com is managing BharatMatrimony.com and CommunityMatrimony.com. It is claimed to be one of the fastest growing and profitable organisations in both the digital and offline space. Over the years, it has initiated several new business models, such as AssistedMatrimony.com, EliteMatrimony.com and CommunityMatrimony.com.
It has also launched marriage services such as MatrimonyDirectory.com for matrimony-related directory services, MatrimonyPhotography.com to provide wedding photography and videography services and MatrimonyBazaar.com to help customers in availing wedding-related services such as wedding apparel, venue, stage decorations, photography, make-up, catering and honeymoon packages from various vendors to meet customers' wedding needs. We have also recently launched MatrimonyMandaps.com, a wedding venue discovery platform, to help customers find the right venue for their wedding in Chennai, Coimbatore, Madurai or Trichy.
The company during FY15, FY16 and FY17, had 647,000, 678,000 and 702,000 paid subscriptions, respectively. During FY17, company has posted a total revenue of Rs 292.93 crore, as compared to Rs 255.43 crore during the previous financial year.