wordpress blog stats
Connect with us

Hi, what are you looking for?

45% of Naukri’s total traffic is mobile: InfoEdge analyst call

naukri-Screen Shot 2014-10-28 at 7.44.12 am

Ecommerce and online classifieds company InfoEdge reported a net profit of Rs 33.91 crore for the quarter ended September 30th, 2015, registering a profit rise of 2.07% from the same quarter last year. The company continued heavy ad spends in the quarter which accounted for 26% of the total expenditure this quarter. In a call with analysts, InfoEdge’s top management explained the company’s performance. Here are some of the highlights:

Naukri operating highlights:

– The company added an average of 12,800 CVs daily, Naukri database stood at 44 million CVs

– Average CV modifications stood at 185,000 every day, over 135,000 in Q2 last year

– The company said it serviced 34,000 unique customers, up from 31,000 in Q2 last year, while in H1 (first half), it serviced 44,000 unique customers, versus 40,000 in H1 last year. It’s not clear what it means by serviced.

– In Bangalore, Naukri India domestic corporate sales grew at 20-25% per annum, while non IT markets like Mumbai and Delhi grew at 15-20%.

Advertisement. Scroll to continue reading.

– Traffic share grew by 70% last year. Naukri mobile traffic is now at 55% of total traffic

– Has more than 1,500 customers this year

Naukri product updates:

– Naukri launched a referral hiring manager/referral hiring portal which has a few hundred customers, an improved applicant tracking system, basic campus hiring solutions and campus hiring products for companies, and a service to help companies shortlist and screen resumes for e-hire.

Bikhchandani: “We operate in all segments and a lot of our hiring on the portal is for people with 2-8 year experience and while there is a lot of demand in the junior category because there are just many more jobs out there, it is not as if the mid-level position is also easier to fill.”

99Acres updates:

– Competitive intensity might reduce slightly but the market will not recover anytime soon

– Demand for homes in Noida, Gurgaon, Mumbai, Hyderabad continues to be weak, unfinished projects depressing new launches. Transactions down year-on-year, new launches in many markets down 50%, unsold inventory at all time high at current sales rates

Advertisement. Scroll to continue reading.

– Reduced marketing spend in Q2, from a substantial spend in Q1. As per Comscore, 99Acres has been averaging between 35% to 40%, while Magicbricks is down to about 21- 22% for the last 2-3 months. 6 months ago, 99Acres was at 27-28%, Magicbricks was at 33-34% but 99Acres is back to being 50-60% bigger than Magicbricks on traffic share.

– On cash burn: 

 Hitesh Oberoi said, “Cash burn in 99Acres went up, so overall operational cash came down. Housing and Commonfloor have together burned about $160-170 million over the last two years and made much headway. Quikr has already spent $200-250 million (for acquiring CommonFloor).”

99Acres operational highlights: 

– 45% of total traffic is mobile

– Invested in solutions beyond listings and database access, acquired two companies: one in the area of semantic search to improve search and matching technology

– Launched a product to power corporate career sites

– Oberoi said that the company had raised over $100 million through a QIP for an investment in 99Acres, of which it has spent only $10 million, and is not looking for another investor in the business unless “things go out of control”.

Advertisement. Scroll to continue reading.

On Zomato:

– Zomato focusing more on revenue growth and breaking even in the foreseeable future, expensive for InfoEdge to hang in there.  InfoEdge owns 56% in terms of equity, common stock, and rest is fresh stock which other investors have. That’s why 47% is on fully converted basis but the equity holding that we have is 56%.

Sanjeev Bikhchandani: “…Quite reluctantly, Zomato has got perhaps too big for our balance sheet which is a good problem we have because the company is succeeding and doing well and because of the success that we are unable to hang on to majority and quite reluctantly we sort of agreed to internally to slip below 50% and that is our position.”

 Sanjeev Bikhchandani: “Now as far as things not being well in Zomato, I think Zomato is very quick to recognize beginning August, September that look there are changes in the environment and therefore strategy has to change. And the new strategy is to perhaps de-prioritize land grab so much and very quickly focus on revenue growth, get it back to where it was and even the growth that is growing 3x over the previous year every year and very rapidly cut the burn and move to breakeven sometime in the foreseeable future…. So I would say yes the company has sort of implemented right sizing and the dust will settle and I think hopefully in 3-4 months you will see that revenue has moved up, relatively moved up and it is well on its way to implementing the plans. So we are not unduly concerned about Zomato’s prospects in the medium to long-term.”


– Net sales grew 15% y-o-y to Rs 11 crore

– Added an average of 2,455 profiles everyday, 33% increase y-o-y

– Paid customers up 31% y-o-y

Advertisement. Scroll to continue reading.

– EBITDA loss at Rs 6 crore, up from Rs 2 crore in Q2FY15, PBT level loss Rs 6.6 crore, up from Rs 2.5 crore in Q2FY15

– 65- 68% of total traffic is mobile

Hitesh Oberoi: “..till last year our total losses in Jeevansathi were less than $10 million, that’s what many starts burn in a month. And we think we have a few ideas and we want to experiment with before we say we are done… our volumes are up 31% after a long time.


– Shiksha net sales grew 13% y-o-y and reached Rs 7 crore. EBITDA loss was at about Rs 1.4 crore and PBT level loss was at about Rs 1.7 crore.

InfoEdge strategic investments:

– InfoEdge’s stake in Zomato went down to 47% from the previous 50.1% after Zomato’s new round of funding.

– Invested Rs 8 crore in Canvera, where it now has a 38% stake. Canvera raised a small round of funding from existing investors.

Advertisement. Scroll to continue reading.

– Invested Rs 6.4 crore in Bigstylist.com for a 25% stake.

– Total amount invested in investee companies is at Rs 775 crore

– In October, the company transferred balance shareholding in PolicyBazaar to its subsidiary MakeSense, which now owns the entire 18% of the stake in PolicyBazaar.

– Temasek invested total of Rs 134 crore for a 49.99% stake in MakeSense, including a Rs 31 crore investment in PolicyBazaar, and now MakeSense has a total of 20% stake in PolicyBazaar. InfoEdge owns half of MakeSense, and its economic interest is 10% of PolicyBazaar.


– Collection growth is at 16% for the company

– Hitesh Oberoi: “As far as the allcheckdeals and brijj go we almost wound down those businesses, so we are not really investing in those businesses any more.”

Advertisement. Scroll to continue reading.

Download: Transcript

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....


By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...


By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...


By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...


This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like


The disruption that affected several websites such as Times of India, State Bank of India, and Swiggy, is not uncommon as a similar incident...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ