Japanese financial giant Mitsubishi UFJ Financial Group (MUFG) has divested 2% of its indirect stake in IndiaMART InterMESH, a leading online B2B marketplace. According to a recent filing with stock exchanges, the decision was made as a result of the sale of four MUFG subsidiaries: First Sentier Investors (Australia) IM, First Sentier Investors Australia (RE), First Sentier Investors (UK) IM, and First Sentier Investors International IM.
Before the transaction, MUFG held a 5.13% stake in IndiaMART. Following the sale, its total shareholding has now reduced to 3.12%.
Details of the Transaction
In an official statement, MUFG confirmed that post-sale, its aggregate interest in IndiaMART InterMESH Ltd. stands at 3.12% of the company’s total ordinary share capital. As of March 17, 2025, MUFG holds 1,875,224 shares, contributing to a total of 60,032,148 voting rights.
It is significant to note that the First Sentier Investors Group was acquired by Mitsubishi UFJ Trust and Banking Corporation, a subsidiary of MUFG, in 2019. With assets under management valued at approximately $140.9 billion, First Sentier Investors operates in multiple regions, including Australia, Asia, Europe, and North America.
IndiaMART’s Growth and Investments
IndiaMART, founded in 1999 by Dinesh and Brijesh Agrawal, is one of India’s earliest internet-based companies. The platform acts as a bridge between buyers and sellers across various sectors, including consumer electronics, chemicals, raw materials, construction, clothing, cosmetics, pharmaceuticals, and automobiles.
In recent years, IndiaMART has expanded its investment portfolio to diversify revenue streams and enhance service offerings. It has invested in several startups, including Vyapar, Legistify, IDfy, EasyEcom, Zimyo, and Fleetx.
Key Acquisitions and Financial Performance
In November 2024, IndiaMART announced an additional investment of INR 14.3 crore in Mobisy Technologies, the operator of SaaS startup Bizom, in an all-cash transaction. This strategic move aligns with IndiaMART’s goal of strengthening its SaaS-driven business model.
For the third quarter of the financial year 2024-25 (Q3 FY25), IndiaMART reported an impressive 48% year-on-year increase in consolidated net profit, reaching INR 121 crore. Its operating revenue also saw a 16% rise, climbing to INR 354.3 crore from INR 305.3 crore in Q3 FY24.
Stock Market Impact
Following the announcement, IndiaMART’s stock responded positively. On the Bombay Stock Exchange (BSE), shares closed 2.52% higher at INR 2,094.95 per share.
MUFG’s partial exit from IndiaMART reflects its strategic portfolio adjustments amid evolving market conditions. Meanwhile, IndiaMART continues to solidify its position in India’s B2B e-commerce landscape, bolstered by strong financial performance and a series of strategic investments.
