E-commerce firm IndiaMart expects to maintain a compounded annual growth rate (CAGR) of 29 per cent for the next two years, mainly on account of big brands joining the platform, a top company official said. The business-to-business (B2B) company, which is in the process of getting listed, posted revenue of Rs 429 crore in 2017-18 and operating profit of Rs 46 crore.

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"Last three years our revenue has grown at CAGR of 29 percent. Similar growth should be possible this year and next year also," IndiaMart co-founder and CEO Dinesh Agarwal told PTI. "We have been generating internal cash which we will deploy once we get listed. We have democratised information for around five crore products with 47 lakh suppliers through our platform. Most of the firms listed on our platform are small and medium enterprises. Now we are going to focus on big brands," Agarwal said.

The company expects to raise up to Rs 600 crore from the initial public offer (IPO). Regarding timing of the IPO, Agarwal said the company will assess the situation post elections. "We are a profitable firm. The IPO is to provide exit route to some of the investors and get new ones on board," he added.

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The existing investors include Intel Capital, Amadeus Capital, WestBridge Capital, Quona Capital and Accion Frontier Inclusion Mauritius. The company has also started working on its software as a service (SaaS) platform and payments services with escrow account facility.

"Bridging the trust gap between buyer and seller will be a big achievement for us. That is why we will focus on development payment and escrow facilitation. The other focus area will development of our own SaaS platform for mobile," Agarwal said.

SaaS refers to a model where customers access software over the Internet. Agarwal said that there are SaaS platforms available for medium and large enterprises but for small entrepreneurs like carpenters or vendors in small towns who operate mainly through mobile phones, there is hardly any decent service available.

"We will develop SaaS more for the purpose of value addition. Significant percentage of revenue will come from big brands, followed by payments and SaaS," Agarwal said.