Consim Info has hived off four portals into a subsidiary called Perspi Interactive and kept only two of its top performing sites – BharatMatrimony.com and IndiaProperty.com. Perspi will have ClickJobs.com, IndiaList.com, IndiaAutomobile.com and Loanwala.com, VCCircle reports.
This decision was taken three months ago, Murugavel Janakiraman, CEO, Consim Info told MediaNama. When asked why BharatMatrimony.com and IndiaProperty.com were chosen, he said, “Matrimony and property are high growth verticals for us and are profitable, while the others are emerging and require a different approach. You want to show profit and growth when you go to an IPO.” He was unwilling to share the financials of specific portals, as the company is a private firm. Matrimony accounts for 70 percent of the companys revenues. According to Janakiraman, Key Performance Indicators of the portals, apart from its key matrimony portal, are:
- IndiaProperty.com – 2 lakh listings
- ClickJobs.com– 3 million resumes, ranked at #4.
- IndiaList.com – 5 lakh listings
- IndiaAutomobile.com – 50,000 listings
- Loanwala.com– Not much focus on this portal, though it is generating leads. Consim is still figuring out how to deal with it.
So is it a case of amputating a bleeding limb to keep the company alive? Janakiraman prefers another analogy, “I’ve many sons: some are growing and some have grown. They need to be treated separately and I have to dedicate resources available to me and take care of their needs. We don’t want some entities to suffer at the expense of others.”
The company is hoping to raise money by diluting stake in Perspi. “With the current market conditions, we don’t know when it will happen – could be 3 to 6 months or even more; putting a time frame on it might not be right,” said Janakiraman, when asked when investors were expected to approach Consim for Perspi. There will be no management-level changes and Consim’s team will run Perspi. Question is, would investors be interested in investing in under-performing Consim entities?
Consim Info will not be shutting down any of the portals. “There will be no write-offs. All are B2B or B2C websites and not advertising dependant. We will grow them and take it public,” he said. Jankiraman would only say that the IPO could happen in the next one or two years.
“ClickJobs.com is number four in its category whereas IndiaProperty.com is a leader and is growing. We can run IndiaProperty.com ourselves and will raise money for the others separately,” said Janakiraman.
Consim Info’s rival InfoEdge recently claimed in its earnings call that its online real estate classifieds portal 99acres.com had a 35-40% market share. 99acres witnessed a 71% reduction in EBITDA losses in the quarter ending September 2009. Naukri’s COO Hitesh Oberoi said that IndiaProperty.com and Makaan.com (by the People Interactive group, which also runs Shaadi.com) were losing out as they were not investing enough.
InfoEdge’s Jeevansathi.com reported a small EBITDA gain during the quarter, and a 15.8% growth in revenues. It has not added any offline centres and is expected to break even at the end of the fiscal. BharatMatrimony, VCCircle reported, had also shut down a few unprofitable offline centres.