WestBridge backs Vyapar as portfolio firm IndiaMart acquires Busy Infotech

 WestBridge backs Vyapar as portfolio firm IndiaMart acquires Busy Infotech

Indian private equity firm WestBridge Capital has invested in a business accounting software provider while its portfolio company IndiaMart InterMesh Ltd has agreed to fully acquire another accounting software company.

WestBridge has led a Series B funding round of Rs 217.6 crore ($28.9 million) in Simply Vyapar Apps Pvt. Ltd. Separately, IndiaMart said it will acquire Busy Infotech Pvt. Ltd for Rs 500 crore ($66.5 million) in cash.

WestBridge owned a 3.38% stake in IndiaMart, a Mumbai-listed B2B marketplace operator, at the end of December.

IndiaMart said in a statement it is also taking part in Vyapar’s Series B round, as is existing venture capital backer India Quotient. Vyapar’s valuation after this round will be around Rs 883 crore, IndiaMart said.

IndiaMart invested Rs 61.55 crore via a mix of primary and secondary share purchases in Vyapar. It now holds 27% of Vyapar on a fully diluted basis. IndiaMart had led Vyapar’s Series A round in September 2019, by investing Rs 31.2 crores for a 26% stake.

Both Vyapar and Busy Infotech operate in a similar domain. Busy Infotech offers web-based business accounting services including Goods and Services Tax billing and return filing, invoicing and inventory management. Vyapar offers a GST billing, accounting and inventory management app for small businesses, which allows them to digitize their business operations. It says has over 100,000 paying customers for its product.

Busy Infotech was incorporated in 1997 and clocked a profit after tax of Rs 11 crore on revenue of Rs 42.4 crore for 2020-21. Simply Vyapar was incorporated in 2018. It posted revenue of Rs 11.7 crore for 202021, up from Rs 5.6 crore and Rs 1.5 crore in the previous two years.

Dinesh Agarwal, founder and MD of IndiaMart, said the acquisition of Busy Infotech augments the company’s “value proposition”. He also said that IndiaMart had initially invested in Vyapar with a “strong belief in the product and in the team’s ability” to execute at scale. Since IndiaMart’s initial investment, Vyapar has grown several times, he said.

Sumit Upadhyaya

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