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Online match-making service provider Matrimony.com will invest ₹40 crore to open a new office in Old Mahabalipuram road after initial public offering.
Murugavel Janakiraman, Founder and Chief Executive Officer, told BusinessLine that the company recently acquired 1.65 acres in OMR, where it will build Matrimony.com office.
The company has a total of 1,500 employees across three locations in Chennai. It is stepping up its Matrimony Bazaar, photography and Matrimony Mandap services. The demand for online-match making services is also on the rise. Given the positive market trend, having a central location helps them coordinate operations better, Janakiraman said. The company will invest ₹20 crore in marketing, ₹40 crore will go towards overdraft the company has and the rest will be operational expenses.
Matrimony.com refiled a draft red herring prospectus with the SEBI for IPO recently. The company scrapped its initial proposal for IPO at the end of last year on the account of slow market growth due to demonetisation. The company had planned to raise ₹350 crores and close to ₹150 crore was allocated for marketing spend alone then. Janakiraman said, “We are now profitable so we have stepped down our marketing spend.”
The company plans to raise ₹130 crore this time through issue of shares and offer 37.6 lakh shares for sale from private investors making it a total of ₹500 crore.
Apart from 3.84 lakh share of Janakiraman and 82,834 from Indrani Janakiraman, a member of promoter group, the offer for sales share include 14.6 lakh by Bessemer India Capital Holdings, 1.55 lakh by Mayfield and ₹16.83 lakh by CMDB II.
Private investors include Bessemer India Capital Holdings, Mayfield and JP Morgan.
The company registered a revenue ₹292 crore last fiscal as opposed to ₹255 crore for 2015-16. The company’s operating profit was ₹59.2 crore for 2015-16, as opposed to ₹7.2 crore for the for period that ended March 30, 2016. Profiles in Matrimony.com grew by 22 per cent to 32 lakh in 2016-17 from 26 lakh between 2015 and 2016. Total funding received by the company is close to ₹100 crore.
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