Consim Info, owner of portals like Bharatmatrimony seems to have put on hold its IPO plans looking at the adverse market and economic conditions.The turmoil seems to have affected its expansion plans in a similar manner as livemint reports that Consim info has also cut its proposed expansion for Offline matrimony centers’ by 75 per cent.
WATBlog earlier reported the brewing trouble at Bharatmatrimony and the downsizing activity taken up by the management. We also reported the adverse impacts which could accrue by launching some senseless services in the aftermath of financial trouble.
According to the management, The IPO plans are not completely scrapped but postponed till 2010-11. The deferring is basically due to its major dependency on matrimony business which may not get much high valuations. The revenues of the firm although are not disclosed but the founder had conveyed that the company would increase its revenues by 50 per cent this year and profit margins would also see an up move to 20 per cent from present 10 per cent.
The company received its second round of funding worth $11.75 million from Yahoo Inc. and VC funds Mayfield Fund and Canaan Partners.It is also making headlines for its recruitment portal Clickjobs by launching some industry disruptive business models like free job postings with pay-per contact and payment to job seekers.
Consim info apart from bharatmatrimony also owns indialist, loanwala, indiaproperty, indiaautomobile and some religion based matrimony sites like muslimmatrimony, jainmatrimony, christianmatrimony etc.The company also runs offline matrimony service named ‘bharat matrimony centres’ which also seems to have taken a hit as its tally stands at 75 against earlier projected plans of at least 300 centres.The company has also closed down many unprofitable matrimony centers’ in recent past.
Online Co IPO Dreams In Dolldrums?
Consim Info is surely doing a good thing deferring its IPO plans because the company might had to face several difficulties in successfully completing its IPO looking at its dependency on not so market favorite ‘matrimony’ business. The Online boom has surely not panned out in equity markets as total number of listed online companies are hardly anything to write about. Thus by deferring IPO plans Consim info is awaiting for a boom for online services companies just like currently happening with education services.
Rajiv Dingra Adds: Besides for Consim there were other IPO announcements from players like Shaadi.com, Makemytrip.com both of which were reported to be targetting 2009-10 period as their time to go public. Shaadi, Yatra and Makemytrip had made claims of looking to go for an IPO in 2009 but neither have made any announcement since. You can check these two articles on Yatra IPO and Makemytrip IPO each. We have shot mails to shaadi, yatra and makemytrip and are awaiting their responses on the prospective IPO.
But our take is given the dismal state of OTA’s its difficult to imagine an IPO from them coming anytime soon. Also the stock markets still need to recover from recession blues and hence its less likely that we shall see any online co IPO this year atleast. Do you think online companies will have IPO’s in 2010? Let us know..
I dont think anyone except for Naukri deserves to have an IPO from the Internet space, as yet!! Another 2-3 years before we see Internet businesses getting ready for stock markets and open financial disclosures!
IndiaMART is also planning to launch its IPO….Internet companies are now looking at stock markets
Consim needs to look into their internal problems before floating IPO
They have lost the strategy or ideas for long term business.Infact they have started realising the mistake of throwing out people who had played a vital role in the growth of the company.
The company had seen growth upto september 2007 now it’s a sinking “dinghi” now.