India's VC-backed Matrimony files for IPO

According to a prospectus, the offer will comprise an undisclosed amount of fresh shares, intended to raise up to INR1.3 billion ($20 million), along with up to 3.8 million shares held by existing investors. The latter includes 1.5 million shares held by Bessemer, representing the firm’s entire stake, and 156,000 out of the 2.5 million shares held by Mayfield. Pricing has not yet been announced.

Matrimony operates the matchmaking service and sells marriage services such as catering, photography and decoration through its brand BharatMatrimony.com. It claimed to have more than three million active profiles and 700,000 paid subscriptions as of the end of the 2017 financial year.

Nearly 90% of marriages in India are arranged, traditionally by families, friends, priests or other community members. However, the increased mobility of individuals in modern society has made this tradition more difficult, in addition to the desire of Indian young people to have more control over their romantic choices. Matrimony.com is intended to allow prospective brides and grooms to have input into the engagement process along with their parents.

The company is one of India’s first online matchmakers, and aims to differentiate itself from competitors by targeting the country's diverse cultures. It uses technology and analytics to construct profiles for customers that will help it direct them to the most attractive products.

For the year ended March 2017, the company reported revenue of INR2.9 million, up from INR2.6 million the year before. Over the same period net profit reached INR438 million, compared to a net loss of INR751 million.

Mayfield and Bessemer invested in Matrimony in 2011, committing INR1 billion alongside Canaan Partners. Canaan has since exited its stake. Draper Investment holds about 19,000 shares in the company, but does not plan to exit in the IPO.

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• Topics
• South Asia
• Technology
• Consumer
• IPO
• India
• Mayfield
• Bessemer Venture Partners
• Exit
• TMT