Leading B2B marketplace, IndiaMART on Tuesday said it is acquiring the accounting software company Busy Infotech Pvt Ltd for a cash consideration of ₹500 crore. The B2B marketplace also said that it has participated in the Series B funding round of Simply Vyapar Apps Ltd.
In a regulatory filing, the company said, “IndiaMART InterMESH Limited has entered into an agreement to acquire 100% paid up capital of Busy Infotech Private Ltd (BUSY). Subsequent to the said acquisition, BUSY shall become the wholly owned subsidiary of the company.”
“The cost of the acquisition is up to ₹500 crore for acquiring 100 per cent paid up capital in BUSY i.e. 45,000 equity shares (having a face value of ₹10) at a premium of ₹1,11,101 per equity share from the existing shareholders,” the regulatory filing added.
Incorporated in 1997, Busy Infotech (Busy) is the leading accounting software companies in India with revenues of ₹42.4 crore and net profit of ₹11 crore in FY 21.
“It has been an established brand in the Indian accounting landscape for the last twenty-five years. Thousands of Indian Businesses rely on Busy for their accounting needs, and their value proposition fits in well with IndiaMART’s long term objective of making doing business easy for Indian businesses. This acquisition further augments our value proposition and given our large customer base as well as market understanding, we are confident of taking Busy to the next level”, said Dinesh Agarwal, Founder and MD of IndiaMART in a statement.
Meanwhile, the B2B marketplace also said that it has participated in the Series B investment round of Simply Vyapar Apps Pvt Ltd of ₹217.5 crore. The round has been led by Westbridge Capital, with the participation of existing investor India Quotient.
“As part of the transaction, IndiaMART has acquired shares for an aggregate investment of ₹61.55 crore, via a mix of primary and secondary share purchases. Post this round, IndiaMART shall hold 27 per cent in Vyapar on a fully diluted basis,” the company added.
Vyapar offers a comprehensive GST Billing, accounting and inventory management product for small businesses allowing them to digitise their business operations. It has over one lakh paying customers for its product. IndiaMART had previously led Vyapar’s Series A Investment Round in September 2019, by investing ₹31.2 crore for a 26 per cent stake in the company.
“We had initially invested in Vyapar with a strong belief in the product and in the team’s ability to execute at scale. We are gratified to have seen Vyapar grow several times since then and currently have over 4.5 lakh users of their product. We are enthusiastic about partnering for their next phase of growth, as part of our long-term vision to make doing business easy for millions of Indian businesses,” Agarwal added.