IndiaMART InterMESH has increased its investment in Fleetx Technologies by committing nearly ₹65 crore in the startup’s latest Series C funding round. The move shows the company’s growing focus on Software-as-a-Service (SaaS) businesses and AI-powered technology companies.
The investment comes at a time when IndiaMART has reported strong quarterly financial results, announced new business plans, and continued expanding its technology portfolio. At the same time, the company is also working to solve challenges like subscriber churn and changing customer behaviour due to AI-powered search platforms.
IndiaMART Increases Stake in Fleetx
IndiaMART has invested around ₹64.98 crore by subscribing to 4,630 Compulsory Convertible Preference Shares (CCPS) of Fleetx Technologies. While each share has a face value of ₹10, the investment was made at a premium of ₹1,40,352 per share, reflecting Fleetx’s growing value.
The investment is part of Fleetx’s ₹113 crore Series C funding round, led by IndiaMART and BEENEXT’s Accelerate Fund. Most of the money will help Fleetx grow its business, while the remaining amount will provide exits to some early investors.
After this transaction is completed, which is expected within the next 30 days, IndiaMART’s total stake in Fleetx will increase to 25.80% on a fully diluted basis. The company had already bought smaller stakes in Fleetx during April and May 2025.
Fleetx provides AI and Internet of Things (IoT)-based solutions for fleet management, transport ERP, fuel analytics, and video telematics. The company has grown rapidly over the last few years and has expanded nearly four times since its previous funding round in early 2022.
In FY25, Fleetx reported revenue of nearly ₹78 crore, showing more than 32% year-on-year growth. It has also crossed ₹100 crore in Annual Recurring Revenue (ARR). Today, the company serves over 2,000 customers, including large businesses such as Ultratech Cement, Adani Group, Unilever, Godrej, Maersk, and Panasonic.
Although Fleetx’s losses increased in FY25 because of continued investments in growth, the company plans to use the fresh funding to expand faster, become profitable within the next year, and prepare for an IPO in the coming years.
IndiaMART Reports Strong Q1 FY27 Results
IndiaMART also posted healthy financial results for the first quarter of FY27. The company reported consolidated revenue from operations of ₹414 crore, up 11% compared to the same period last year.
Its net profit increased 12.2% year-on-year to ₹172 crore. Apart from business growth, the profit was also supported by gains from the company’s treasury investments.
The company reported EBITDA of ₹146 crore with a margin of 35%, showing that its core business continues to remain profitable. IndiaMART also has a strong cash position, with cash and treasury investments worth ₹3,553 crore.
Customer collections increased to ₹463 crore, while deferred revenue reached ₹2,014 crore. This indicates that the company has good revenue visibility for the coming quarters.
IndiaMART’s accounting software business, BUSY Infotech, also performed well. Its revenue rose 47% year-on-year to ₹36 crore, and it added around 12,000 new software licenses during the quarter. The company now plans to grow faster by moving from one-time software licenses to a subscription-based model.
IndiaMART has also approved the creation of IndiaMART Finance Limited, a wholly owned subsidiary. The new company will work with lending partners to provide quick financing solutions for MSMEs without lending from IndiaMART’s own balance sheet.
AI Creates Both Opportunities and Challenges
Even though IndiaMART delivered strong financial results, it is facing some operational challenges. During the quarter, the company lost around 1,850 paying suppliers, mainly because of high churn in its entry-level Silver subscription plan.
The management said it is intentionally slowing customer acquisition in this segment to improve customer quality and reduce unnecessary spending. Meanwhile, Gold and Platinum subscribers continue to stay longer and contribute most of the company’s revenue. This helped IndiaMART increase its average revenue per user (ARPU) to around ₹69,000.
The company also saw a drop in Unique Business Inquiries (UBEs). According to management, part of the decline was due to stricter OTP-based bot filtering, while the remaining fall was linked to changing online search habits, as more users are now using AI-powered search tools and Large Language Models (LLMs).
To improve trust on its platform, IndiaMART is introducing mandatory OTP verification for buyers, increasing GST and bank account verification for sellers, and launching a Buyer Payment Protection Program with purchase protection of up to ₹5 lakh.
At the same time, IndiaMART is using AI to improve its own operations. The company has introduced an AI-powered voice system that now handles more than 100,000 customer calls every day. This has helped improve customer conversions, reduce operating costs, and provide support around the clock. AI is also helping the company process business content much faster than before.
With its increased investment in Fleetx, expansion into financial services, and growing use of AI, IndiaMART is strengthening its long-term growth strategy while adapting to the fast-changing digital business environment.