Online and telephone business listings company, JustDial has filed its draft red herring prospectus with SEBI for an initial public offering (IPO), in order to raise Rs 360 crore. We culled out 10 things that we think you should know about, from its draft red herring prospectus. A longer, more detailed post will follow soon.
1. JustDial plans to launch a “Daily Deals” section on its website, leveraging its user base and relationship with SMEs to offer deals and special promotions on products and services.
2. The number of advertiser campaigns on JustDial grew from 40,500 campaigns as of March 31, 2009, to approximately 61,500 campaigns as of March 31, 2010, and approximately 120,200 campaigns as of March 31, 2011.
3. Paid advertisers make payments in advance for campaigns on JustDial, but it still has outstanding receivables – Rs 1.09 crore from paid advertisers as of March 31, 2011. While it verifies some of the information of paid advertisers with whom it enters into a contract and its free listings, the company says that it is not able to screen or verify all the information contained in business listings and cannot assure that any business listing is genuine, accurate or updated.
4. As of June 30, 2011, JustDial’s premium advertisement memberships, which offer priority listings to advertisers represented approximately 16% of its total memberships.
5. The Delhi-NCR region and Mumbai markets contributed approximately 39% of its campaigns and 11 large cities contributed substantially.
6. More than 180 million searches of its database were conducted in fiscal 2011. As of June 30, 2011, it had compiled a database consisting of approximately 6 million business listings across various cities and towns in India, as compared to 4.5 million business listings as of March 31, 2010. As of June 30, 2011 approximately 2.7 million reviews and ratings were published on the JustDial website.
7. The 180 million search queries comprised of 77.2 million Internet searches, 9.6 million mobile Internet searches, 93.9 million voice searches and 19,800 SMS searches.
8.The company is also in the process of developing mobile applications for Android, iPhone and Blackberry. Its mobile platform features location-based search and “predictive auto-suggest”, available on most versions of its mobile website.
9. JustDial discontinued its print business in fiscal 2011. Excluding the impact of the print business in both fiscal 2011 and 2010, its consolidated total income increased in fiscal 2011 by 58.4% over fiscal 2010.
10. Just Dial’s group companies, JustDial Global and Just Dial Inc., USA incurred losses during the last three years. While JD Global reported losses of Rs 9.72 crore in FY11 and Rs 4 lakh in FY10, JD Inc USA incurred losses of $28,661 in FY11 and $62,884 in FY10. The company sold its entire shareholding in JD USA, which used to be its U.S. subsidiary, to JD Global, which ceased to be its subsidiary in fiscal 2011. It will receive an annual license fee equal to 1.0% of JD USA’s net revenues pursuant to a trademark license agreement between the company and JD USA.