IndiaMart acquires SaaS startup Livekeeping for $3.1m

IndiaMart InterMesh Limited has completed its acquisition of the SaaS startup Livekeeping Technologies, making it a wholly owned subsidiary.

The transaction was valued at 26.78 crore rupees (US$3.1 million), according to an exchange filing.

In 2022, IndiaMART acquired a 51.09% stake in Livekeeping for 45.98 crore rupees (US$5.52 million).

In 2023, it increased its stake by an additional 14.88% for 13.39 crore rupees (US$1.61 million), raising its total ownership to 65.97% before this latest acquisition.

Livekeeping, founded in 2015, offers a Tally-integrated application that includes features such as payment reminders, expense tracking, GST bill sharing, and eWay bill generation.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Systematic ecosystem building through strategic acquisitions

IndiaMART’s complete acquisition of Livekeeping is part of a calculated ecosystem expansion strategy, not merely isolated investments.

The company has deployed over Rs 900 crore ($108 million) acquiring stakes in various startups since April 2021, using funds specifically raised for this purpose, Rs 1,070 crore ($128 million) from institutional buyers1.

These acquisitions aim to create an integrated B2B ecosystem spanning HR management (Zimyo), accounting software (Realbooks), logistics solutions (Fleetx), and e-commerce enablement (EasyEcom)1.

By acquiring Livekeeping, which provides financial tracking tools, IndiaMART continues building a comprehensive suite of business services that complements its core marketplace, transforming from a simple B2B directory into a full-service platform.

The strategy is yielding financial results, with IndiaMART reporting an 81% increase in net profit to INR 180.6 Cr in the most recent quarter, demonstrating that this ecosystem approach is translating to bottom-line growth.

2️⃣ Capturing growth in India’s expanding SaaS market

IndiaMART’s acquisition of Livekeeping represents strategic positioning in India’s rapidly growing SaaS sector, which is projected to reach $62.93 billion by 2032, growing at a 27.3% CAGR2.

The Indian SaaS landscape has grown significantly, from 471 startups in 2016 to over 26,000 by 2022, creating substantial market value and competition for established players3.