Q1 21/22

Jul 23, 2021

Good evening, ladies and gentlemen. This is Ravi Gotval from Churchgate Partners. And on behalf of IndiaMART Intermesh Limited, I would like to welcome you all to the company Q1 FY 'twenty two Earnings Webinar. As a reminder, all participant line will be in the listen only mode And there will be an opportunity for you to ask questions once the presentation concludes. Joining us today from the management side, we have Mr. Dinesh Agarwal, Managing Director and Chief Executive Officer Mr. Vijay Agarwal, Old Time Director Mr. Prateek Chandra, Chief Financial Officer Mr. Puneet Gupta, Vice President, Strategic Planning and Investor Relations. Before we begin, I would like to remind you that some of these today's webinar may be forward looking in nature and may involve risks and uncertainties. Kindly refer to Slide number 3 of the earnings presentation for the detailed disclaimer. Now I would like to hand over the call to Mr. Dinesh Agarwal for his opening remarks. Thank you and over to you, sir. Thank you. Good evening, everybody, and welcome to IndiaMART's Quarter 1 FY22 results conference call. I hope you all and your loved ones are staying safe and healthy. We have already circulated our earnings presentation, which is available on our own website as well as the Stock Exchange's website. I'm sure you would have gone through the presentation and detailed Financials are touched. I would be happy to take any questions afterwards. In the meantime, I am pleased to report that India Mart has delivered a consolidated revenue from operations of INR182 crores in the Q1, representing a year on year growth on of 19% on a lower base of quarter 1 FY 2021. Collections from customers stand at INR 170 crores in this quarter and And deferred revenue has increased from INR 628 crores as of June 2020 to INR 715 crores as of June 2021. I think we have been able to navigate the disruptions caused by 2nd wave of the COVID much better than last year and have been able to sustain and deliver a profitable growth in this quarter as well. IndiaMART sustained buyer traffic of about 268,000,000 in Q1 FY22 and business inquiries of 162,000,000 in Q1 FY22. During the challenging 2nd wave of COVID-nineteen, our 90 days repeat buyers stand at about 55%. Unlike FY 'twenty one where we had lost In the Q1, we had lost about 14,000 customers. We saw lesser mortality and 6,000 paying customers have been declined on the sequential basis closing the total count of 146,000 customers for the end of the quarter. We remain committed to enhance our value proposition and deliver value to our customers through organic and inorganic initiatives. As communicated earlier, In line with our strategy, we have made certain progress in the areas of accounting, logistics software, distribution management, SaaS and Order Management. Now I would like to hand over the call to Pratik to discuss financial performance in little bit more detail. Thank you. And over to you, Pratik. Thank you, Dinesh, and good evening, everyone. I will take you through the financial performance for the quarter ending June 2021. Consolidated revenue from operations were at INR182 INR182 IN THE QUARTER, A GROWTH OF 19 percent year on year supported by both increase in ARPU and paying subscribers year year over year. Consolidated EBITDA was INR 89 crores, representing a margin of 49%. As highlighted earlier, company posted strong YOY revenue growth due to a low base of Q1 financial year 'twenty one for comparison and maintained high margins as we continue to work from home and have lower cost. Net profit for the quarter was INR 88 crores with a margin of 42% and Cash generated from operations during the quarter was INR 61 crores. Thank you very much. We are now ready to take any questions. Thank you, Pratik. We will now begin a Q and A session. Please allow camera and microphone access if you wish to ask a question and use the raise hand option. You may type your question in the discussion panel and we will revert to you if any question remains unanswered. Please restrict to 2 questions so that we may be able to address questions from all the participants. We will wait for a couple of seconds while the question queue Cymbals. I repeat once again. Please raise your hand in order to ask questions and enable your camera and microphone access. So first question is from the line of Amit Chandra. Please go ahead. Yes, Amit, we can hear you. Please Go ahead with your question. Yes. This has led to the increase in the realizations. So if you can provide some clarity on that, then I have a follow-up. This Time and even this time, I think, almost 80% -ninety percent of the total customer that we decline is coming from the silver monthly bucket only. And most of the other customer buckets have either more or less filled up from the new upgrades or have signed up. So there we have not seen much of decline. Now coming to your second question on the realization, The total revenue itself has been increasing, which is coming from the deferred revenue. Deferred revenue last quarter had increased substantially and so is the revenue for this quarter and it is divided by the number of customers this quarter. And since most of the customers which are downloaded or which are removed are the lowest ARPU customers and that is why you see a a certain jump in the average revenue realization per customer for the quarter. I believe that is just quarterly aberration. And as soon as we will recover this customer base that will normalize back again to a 45,000, 46,000 rupees. Okay. Okay. So thanks for the clarification. And also, sir, in terms of your investments that you have planned, you know, for the for the rest of the year and, you know, like what kind of recovery you're seeing. So based on that, look, can we expect, like, upfronting of some of the investments that We have been doing in terms of sales and marketing in terms of also sales cost because that has been coming down consistently. So based on the market conditions and based on the recovery that you're expecting, how do we see the now how do you see the different cost going forward in terms of your investment in sales and marketing and hirings and in terms of your also full scope? And also in, in terms of the increasing competition, now like maybe some of the competitors are spending huge amounts Money on advertising. So are we seeing any impact of that on say traffic or in terms of any of our clients, like, no, thing from IndiaMART to the completion of something of that sort of experience. Yeah. So since you have asked 2, 3 questions, let me try and answer them 1 by 1. So first one, let us see the We have been telling this that in the October, November, December quarter itself that we could not do hiring in the first two quarters of last financial year and we wanted the office to open before we start hiring. However, that did not happen until So post Diwali we started to hire number of people and that could be seen as in this last quarter we have been able to increase total employee on the roles of India Mart from 2,700 to about 2,980 January, February, March was good months where we could do the campus interviews, do the other interviews and hiring was good. However, as you know, April May were pretty bad for everybody. Many of our employees and many of our people were very suffering. So I think there could be a little bit of a dent on the Speed of hiring that we could do, but other than that we definitely are committed to get back to our employee numbers and especially on the sales and servicing numbers as soon as possible over the next 2, Headquarters. The second question that you asked was in the, in terms of the cost guidance that we have been giving Very similarly that we used to have a pre pandemic cost of about CHF 115, CHF120 And we believe that it had come down all the way to INR 180 crores, which has now 200 crores which has increased from 80 to 85 crores to 90 to 95 crores. And We continue to guide that it will remain in the range of INR 100 ks105 ks. Now Now the competitor advertising, I think, yes, you are referring to the recent advertising done by on the IPL thing. But look at our buyer side traffic and the buyer side traffic remains as DT. So I don't think advertising has led to any distraction on that side. And we will continue to evaluate. We have a good profitability as well as cash balance and we will not be shy of advertising if at all needed at any given point of time. Thank you. Yes, sir. Thanks. Thanks for the listening, but the answer on this on this, you know, the completion angle. Now with Reliance acquiring A majority state and now the company is also having a good watches. So are we in any case worried about that in any sense that, that food watches can impact our, you know, the future ambitions or are we planning to tweak some of our strategy as of now? I think we will maintain the same stance as earlier. I've been saying that more investment, more entrepreneurs, more industrialists coming into Internet as a sector, software as a sector, marketplace as a sector, e commerce as a sector is good for the entire sector. Secondly, In the last 2, 3 years the number of internet users have gone up tremendously and their needs have gone up tremendously in terms of software needs in terms of commerce need in terms of and there are huge opportunity today to channelize different kind of things. And I don't think it will be possible for a single IndiaMART or a single Justile or single Google or a single Reliance to do that. Many more people and many more entrepreneurs and talent and industrialists would be welcome in that side. Having said that, yes, Gestalt was always a very different business than our B2B business. They had recently announced the entry into B2B. We haven't seen yet much of the traction Action on that side or haven't heard anything, but we remain cautious and keep monitoring the situation properly. At India Mart, I think our focus will remain to see how do we continue to increase our network effects by way of more buyers and more suppliers coming there and the supplier behavior data and the buyer behavior data that we gathered over a period of Last 10 years and every year that we gathered with 55% repeat visit that we will use towards behavioral Matchmaking using AI and MLN, different data techniques. Also, as you can see, we were slowly and slowly expanding our ecosystem to go beyond just discovery towards financial accounting, towards Technology and towards distribution management or other management side. And we continue to look for more organic as well as inorganic opportunities. Within India Mart organically also our lead management system has been slowly and slowly going towards becoming a conversational ecommerce platform. And we continue to work slowly on that bit by bit. I'm sure these things will result. Hope that answers your question. Yes. Thanks and all the best of all. Thank you. Next question is from the line of Amit Jaswani, Italian Asset. Please go ahead. Hi, Dinesh. Dinesh, when I look at your vertical things, you've done everything perfect. When I look at website, RFQs, number of buyers, sellers, you created a great platform. So you are perfect horizontally. But do you think we've been The conservative are not going vertical. I mean getting into newer products which can solve large customer problems because you have massive numbers of customers, Probably the largest. What we are doing right now is a very small scale things. Your customers need accountings, they need websites, they need a lot These SMEs need to get digital and you have a platform. Do you think, because we have capital, do you think we need to Hire the right kind of skill from a place like Zoho, etcetera, to get that thing rolling. The vertical so my question is more on the vertical of IndiaMART, not on the horizontal things. Horizontal things, sir, now it's an automatic platform that you have created. So My ideas are more based on how do you think about verticalization and what large new customer problems can you solve. Okay. Thank you. So on the let's say, first of all, how do we expand our ecosystem horizontally? So Within horizontal ecosystem, as you can see, we started with the website, we started offering them RFQ and by lead system, We started them offering the cloud telephony, lead manager and CRM. Now we are adding Accounting, logistics, order management, we already have a payment system in place. So horizontally, we have been adding multiple items and we have been investing into multiple items. You are right, vertically we have not invested so far into any, But we continue to look for any vertical inorganic investment opportunity. On the other hand, If you look at internally, we have last year also I said that previous to pandemic More or less very little category focus was there within India Mart. It's only last year first time when the suddenly I have to work on the medical as a category or medicine as a category. We realize that there is a huge opportunity to do things presented more vertical category wise and we are actually in the process of increasing team and expertise on that side to so that more and more vertical fulfillment can be done And more vertical problems can be solved. And you are right, yes, hiring better people and can definitely improve this whole area and the better we are able to hire and better we are able to execute that is how we will go. But to answer your question, we are Looking at vertical, vertically inside the category management, and also we are expanding horizontally slowly. Right. Right. Dinesh, last time when we had a conversation, he was speaking about 5 to 10 X growth in the next 5 to 10 years. Have you set like a roadmap for it? That, you What I'm at 1 and a half like customers. I need to go to 7, 8 like customers in the next 5, 7 years. You already have a large number of customers already on your platform, of course, they're not paying, but do you have a, have you set like a roadmap or does it include many vertical things, in that kind of goal that you have set? Yes. So I think as a broad strategic roadmap, we have shown that we would have a core SME business and the medium and large enterprise business and then FinTechs and Vertical Commerce. However, if you ask me, do I have a business plan broken quarterly on that? We don't Yes. We have done about 5 investments in different sectors so far inorganically. At the same time, we have done organically in 2, 3 sectors, whether it is payment or whether it is CRM lead management or whether it is order management. So I think give us some 2, 3 more quarters We will be able to give you a slightly more deeper insight on how does the growth will look like. I think We would have given you a better insight if the April May would not have happened. But Everything was started to fall in place in the firm, but I think a premium was a big surprise. Right. Right. Dinesh, what is, according to you, except discovery, what is the biggest problem of your customers? Like, these are SMEs largely. Why your customers? Would you say, Fintech? Would you say more on the logistics side? That is where our large focus because there are large profit pools you can target. You've already nailed 1 profit pool in Asia. So I'm just trying to understand which is that big problem Which your customers you think have, which is adjacent to your IndiaMART platform. Is it logistics? Because we've tried once On the logistics side in 2015, 16, if I'm not wrong. So if you can also help us understand what stops us getting more on the logistics side also, so that we control the ecosystem better. Yes. So I think we have conveyed it multiple times. So if you should look at this The dark blue ones are the areas which we have already worked upon and we continue to improve upon. The light blue ones, There are 4 areas which have been defined. 1 is the payment, the second is the logistics technology and tracking, the third is transaction financing 4th is the enablement of business. I think on that side, enablement of business is lot more fragmented because multiple different SaaS and multiple different solutions are to be integrated. It is not just one big ERP that you can acquire and SMEs will start using it. Unlike and similarly on the logistics side, the medium enterprise uses very different logistics technology that as compared to a D2C brand. So Shipway where Shipway fits into a D2C logistics help, It's an Intuva, slightly more larger size medium to large enterprise logistics and Payments front, we have been building organically and we have continued to look for more partners on that. As I said, credit and transaction financing, we tried doing some small, small pilots before the pandemic, but after the pandemic Immediately, I think everything went onto the back burner. So currently, our focus remains on the enablement of business logistics tracking and the payment side. And as we get more granular data we will come to the transaction Got it. Thank you. Thank you. Birlish, one last question. Do you think Dinesh this year also will be able to grow at 25% Around those levels, since July of June July, you've seen a bounce. You probably might have seen a bounce in June July. You think this year, by the end We'll be able to do 25% or kind of growth? I will keep mum not to answer this. Thank you. Thank you, Mr. Dinesh. Nice speaking to you again. Thank you. A reminder to all participants So next Yeah. I just want to know like with respect to the outsource field sales representative, which usually is disclosed. So I just wanted to know if you can get the numbers for those outsource field sales representative and total sales and service representative. And that was number 1. And number 2 is that going forward like since this field sales, the penalty count has declined significantly from the last year right from Q4 FY 'twenty. So do we see aggressive hiring happen on this front? So as you know acquiring more and more customers thereby resulting in increased outsource Yes. Mohit, this is slightly complex Answer here. So let me try to explain you. So the way Total sales and service organization in IndiaMART is by and large divided into 2 parts. 1 is the client acquisition side, the other is the client servicing upsell and renewal site whether they are on field or whether they are on telephone. Currently, The most 99% of our renewal servicing upsell team which we call it client servicing team, which actually brings about 80% of the revenue is in house on IndiaMART roles. We have not experimented any kind of an outsourcing on that. However, on the client acquisition side, If you see about 2, 3 years ago, we used to have 100% on in house set of people. Then we actually started to hire some of the people on the outsourced payroll like team leads or other companies. And then we also started to look at The telecall centers who could work with us either on a per seat option or on a per sale base over just like a DSA. And now we have told you in the month of July or September, But we started with the option of the franchise or a dealer distributor network spread in as well as India Mart. Some of them could be selling telecom as well as India Mart. So, that is why we have only now declared the employees on our own roles and the sales managers which are managing this outsource sale because 80% of this new client acquisition team is now on the different outsourced model. So you will have to look at the cost directly on that side rather than the headcount. If at some point of time in future I will be able to get a Clear number which I can give you in terms of headcount, we'll give you. But as of now, it is difficult to give you a headcount number rather than Cast. I have understood. Thank you for that. Thanks for that. Thank you. Next Next question is from the line of Bharatya. Please go ahead with your question. Yes. Dinesh, Continuing from an earlier question, there are many things that we have done well and then there There are others where we have taken some baby steps. And then there are areas which are, where we are aspiring to be some thing. But as yet, they have not commenced or taken any steps. So given the Size of the opportunity, which is very large before us. Unless you disagree that the size of opportunity is small, then it's a separate issue. But if you agree, the size of opportunity is large. What is inhibiting us from Moving about in a more, so to say, measured way. I'm not saying that we take rash kind of states in haste. But if we allow opportunity to kind of To be prolonged beyond a point, then to that extent our own competitiveness and our own strengths will diminish. So what is your view about all of this? How are you seeing the situation? Yeah. Bharat, you're right to some extent. And just to reiterate, There are 2 ways that we would want to tackle this large opportunity issue. So immediately after the IPO, we said that, okay, let's start on 2 pronged strategy. 1, The inorganic side and one on the organic side. On the inorganic side, we did 1 or 2 investment and then this whole last 15 Once pandemic had happened, though we continued to do the more inorganic investments in the last 2, 3, 4 months after the 1st 6 months of the pandemic. On the organic side, We have been telling you that our conversational commerce part is shaping up well on the lead management and CRM side. However, you see very little happening on the payment and Yes, Mr. Bharat, can you hear us? Mr. Dinesh, you may please continue. Yes. So I think it's just that These uncertainties and challenges every now and then are distracting us from taking those 2 pronged approach in a much faster manner. That's the only thing you can say. But I fully agree that we should Looking at these opportunities both organic and inorganic in a measured as well as in a rational way, faster rational way. And we do not want to go irrational and rash increasing. So I think hopefully will fall in place of or will meet your expectation in times to Next question is from the line of Kumar Pandit, Somrest Capital. Please go ahead with your question. Hi. Thanks very much for the call and congratulations on your thoughts. I have a couple First one is, could you just explain the dynamics behind that? So Mr. Kumar, could you please speak a little bit louder? Yes, of course. Is that Yes, please continue. Great. I just wanted to understand the dynamics behind the AR PPU growth In spite of the decline in paying subs and whether you think these dynamics are sustainable and whether these trends are sustainable and are they near to long term? Thank you. Yes, Mr. Kumar, I think I have already answered that question. Due to sudden decline of the number of customers, mostly from the lower ARPU segment, this suddenly looks like an aberration. I have already answered that once we recover to start the customer base growth and recovery on that side, it will come down to the usual INR 45,000 INR 46,000 INR 46,000 INR 46,000 Thank you. Apologies. I missed the early part of the call that you mentioned that. So thanks for clarifying that. Do you have any other question, Mr. Kumar? No, that's fine for the time being. Thank you. Next question is from the line of Sudhir, ICIC Security. Please go ahead. Thank you for taking my question. Firstly, in terms of the cost structure, right, you spoke about, let's say reorganization or restructuring of the sales team into 2, 3 different models. And accordingly, our cost structure may have And we have also been seeing some of the COVID led cost tailwinds for the time being in terms of, let's say, a higher mix of telecallers rather than put on seats, so on and so forth. So when we reach the study state, let's say, when COVID is And when we reach the study state, how do we think about the study state margins at an EBITDA level? I think I've already given that answer earlier also. We used to be at 30% margin, closer to 30% margin And we had saved about 20 odd percent or increased the margin by about 20 odd percent. Half of that is because of the different kind of automation that we have been able to do and I think there is a permanent shift in the business that has happened. And half of that is slowly going to come back because we have not been to hire and we have not been going to the offices. And I think the employee cost is one of the biggest cost and other some of the other cost that will return. So I would say that if you Take that into account with from closer to 30% margin, I think we'll be more closer to 40% margin in this steady state. Got it, Dinesh. And the second point on the buyer side traffic For, you know, business inquiries delivered, so on and so forth. This quarter, I think there is a bit of buoyancy we have seen. So Is this a decent part of this led by leveraging product categories like oxygen concentrators or oxygen cylinders so on and so Yes. In the month of April, a lot of oxygen related and IPAP, IPAP and mask related items were there. Some of them has sustained like mask has become A permanent feature now. In the May, a lot of them were for the purpose of medicines, Remelisibir or Tarsilizumab and things like that. Because after certain time, the medicine shortage has started. But in the June, I guess, the traffic had sustained. So it is not that the Whatever the spike came in the April May, because in April May on one side these medical spikes came. On the other hand, naturally the industry was more or less shut down. So that actually balanced it. But we are seeing in the June month or in the current weekly trend. I think 250,000,000 to 60,000,000 traffic seems like a sustainable traffic. Got it. So even after that spike is over, that rush towards oxygen concentrator as a category is over, you are still seeing reasonable amount of buy and see in the inquiries delivered and the buyer side traffic? Yes, it is because very diversified as you have seen in the past, We are coming from 50 different industries and almost 100,000 different categories coming from 1,000 plus towns and cities, Tier 1 cities only contribute about 33% of the buyer traffic, Tier 2 city about 25% and then Tier 3 and 4 is actually increasing now at 41%. So we have a very well diversified traffic across fashion, apparel environment, chemical, fertilizer, Medical, Agro, Machinery and everything. So I guess We have seen on even on a monthly basis if you go and look at any of the indicators at Alexa or similar web. The traffic is maintained and we believe that There is a permanent shift has happened towards Internet adoption and India Mart has proven to be a go to place for our people. Yeah, yeah. Got it, Vinesh. Thanks and all the best. Thank you, Sudip. A reminder to all the participants that you may use raise hand option on your screen if you wish to ask a question. Next question is from the line of Bharat Shah. Please go ahead, Bharat. Next question is from the line of Kushagra Bhattar. Please go ahead. Yes. Hi. Thanks for giving me the opportunity. Am I audible? Yes. Yes. So one question on this Data advantage which you are mentioning of buyers and sellers on your platform with all the AIML you can do on that. I just wanted to get a more I hope sense on how with this whole data you are sitting on, what sort of analysis or what sort of advantage you can do versus others possibly because all of the businesses in the B2B space are sort of moving in similar direction. So How are you thinking of differentiating yourself in a way what additional offering which you can provide which I got it. I got it. Others would not be able to. And also one related question is with the Reliance data sitting on, right, with all the geo What data you think is probably you are missing today, which Reliance will be bringing to the table with their telecom and whatever geo platform ecosystem we have. So let me first answer what we know of our own business. So there are 2 kinds of data. 1 is the database, the supplier database or the category database or the product database or the photos database or the ratings database that we have, which probably everybody has, even Google has or even the style has. Telecom companies also have some different kinds of data. The second part of the data is the behavioral data or usage data. Now Many, many places you will see more consumer personalization that is being done. So if you go to Google, if you go to Amazon, And as a consumer, you go there not very frequently. You go there frequently, maybe 2, 3, 4 times a month. Here at India Mart, we do very differently. We do supplier personalization. What happens, at India Mart, we have developed 2, 3 very good supplier tools which bring the supplier back on our platform almost Every day or almost some of them every hour. So for example, our RFQ system, our lead management system And our call pickup system, this cloud telephony system. All of these, they actually bring back the supplier and Especially our paying customers almost multiple times a day to our platform. And they end up doing Activities on those kind of buyers which are which they like the best. So if they like the retail Once the best, if they like the Agra ones the best over the Jaipur ones or if they like the sofa set ones best better than the So suppose there are 2 furniture manufacturers, both of them say that they can do all kinds of furniture. Both of them actually sell a sofa also and a table also and a chair also. However, the supplier won like sofas because he has some expertise in sofas and he keeps coming and Checking out RFQs of sofas and checking out replying leads to the sofas very frequently. However, the other guys doing, say, office chairs very frequently. So that we know that both of them are furniture manufacturers, but He is a sofa share specialist and he is a, the other one is a office share specialist. This data is not available with most other platforms and they are not even gathering this. Similarly, we know location affinity, similarly we know price point affinity and similarly we know quantity affinity. The other thing is the buyer profiling that we have created over a period of time. So a buyer comes on our platform say once And then he gave you his number and phone maybe email and name and some information. And he put a requirement for say sofa. Next time he came in and he gave a requirement for say a chair. Next time he came in and gave a requirement for say sofa fabric. So we know That is probably a sofa set integrator or a sofa set fabricator. And we display that to the suppliers. So it's an enhanced buyer profile that we have gathered over a period Because the buyers have been repeating on our platform at 55% rate. So these are some of the Special insights that we gather and thereby we use them in the matchmaking. So we know by behavior that he likes retail leads. We know by behavior that we do not like retail leads. We know by behavior that he is an exporter. We know by behavior that he is an exporter or he is a Local only manufacturer. So we know all of these because of this data that we can collect every day in, day out. And the data sources Our RFQ consumption, our lead management where call back and replies happen and the P and S system. And all of these data sources, obviously, over and above there is a product data which is there available. So that is a very specific data that we are referring to. And anybody will tell you that the relevancy is far more better at India Mart than at any places. Okay. And second part of the question, like, what, you know, data you probably would be missing today, which Reliance is able to provide. Any sense on that or you won't be able to comment on We have not been tracking Reliance. We have not been tracking GeoMART. So we know we are little bit about just that. Now that this development has happened, we will start to study that more in detail as and when more details are revealed. And we'll try to see where we need to act And we'll keep a close watch on the developments happening and then start to build our strategy accordingly. Sure. Last question on the ARPUs thing. So is this the correct understanding when I break it up the ARPUs that the platinum customers, the top 10% suppliers on the platform. The ARPUs for them have kind of moved from almost 1 lakh 80,000 to almost north of 2 2 lakh rupees. So is this a correct understanding, 1st of all? No, sir. I think what happens is The way our revenue recognition work, Prateek, you would like to explain, the way our revenue recognition works, it comes from the deferred revenue. So the way ARPU we calculate is end of the quarter customers. So the total revenue recognized during the quarter divided by the end of the quarter customers. And that is so this does not mean that the ARPU has increased dramatically in a particular segment. It is purely because there has been a sharp decline in the number of paying customers by 6 1,000 and that is why it is reflecting. It is also reflecting that most of the decline has happened at the bottom of the pyramid. Okay. Okay. Got it. And a related question is, so when you mentioned that the ARPUs will kind of go back, I remember in one of the past few what you sort of hinted towards planning or strategizing towards price hikes as well in respective categories. So that so those price hikes are not you are not doing right? I mean, we have been doing minor things here and there and that is how you see a longer dip if you see a longer duration From 33,000 to 44,000 about almost 33% lieside has happened over the last 3, 4 years or so. The specific instance that you're talking about the category based or city based pricing that we have not been able to roll out. And I don't think this is the right time to roll out. Okay. Sure. Thanks. Thank you. Next question is from the line of Bharat Shah. Please go ahead. Yeah. I think earlier I was talking to you and for some reason line got snapped off. So we were discussing that in terms of the size of opportunity, Are we being a bit more measured than what is good for us? Or We think what we are doing in EtaPACE is something which is meaningful and appropriate. The following, that context you answered, I wanted to raise an alternative Point of view on that, supposing we have to if you have to think about IndiaMART 3 to 5 years down the line, what do you think IndiaMART would look like? What will be the Key defining aspects of IndiaMART that you think it will look like. Otherwise, you would The card date is a missed opportunity. Yes. What we think we will look like It's already there on this slide. Puneet, can you put up that slide again? No, I said in 3 to 5 years' time and not today. Yes, this is 3 to 5 years' time frame. This is where we would look like. This slide truly depicts What we want to look like in 3 to 5 years' time. You should say that dark blue or light blue, all boxes will be Cleared and will be attained. 80% of these boxes should be ticked. And the reason why it is Asia not the aid is because of a Strategic reason or not having adequate talent pool or some other reason why it is kind of being moved over slowly. So, Mr. Bharat, I think until last year, we were only doing the First two quadrants, we were only doing the discovery and we were in the process of doing conversation. The next light blue color items we had put down Only in the month of October, November, December last year. So from there, we are only sitting in July. So it's been 7 8 months when we start doing all this. Thank you for the opportunity. So Slide 32 is Fantastic transparency in terms of how your franchise is being developed. I had one query and one request. So the query is that, is it possible for us to report the percentage of inquiries that have been fulfilled successfully as a percentage of total business inquiries delivered? Sir, that number is only available to us on a Sample feedback basis and we get almost 100,000 feedbacks every month. So out of the Monthly daily unique inquiries of about 8,000,000, 7,000,000 that we have, 26,000,000 in the recent quarter. So if you divide it about 9,000,000 per month, we send out feedback mailers to all of them And about 2% to 3% people respond back, which becomes about 150,000 odd feedback. And based upon that feedback and since that is not a very, very The platform is servicing its end purpose. And as long as you're being consistent in the way you are sampling, I think even if you could report this metric based on the samples you're doing, it might be very useful. But, you know, I think this is something I'd request you to think over and see if you could report. But there might be, you know, issues there, which might skew the data. But if you believe that the, you know, sampling is representative and if the 40% is trending higher or trending lower, I think it gives some good feedback operationally. So on a monthly or a quarterly basis, this number that May or may not change dramatically, but on a yearly basis as part of my roadshow and as part of my IP Roadshow and QIP Roadshow many of you had asked this question and I had answered that over the 3 to 5 year period This number has kept moving up from 20 odd percent to almost 40 odd percent. However, in the last year and year and a half, the number of buyers themselves have gone up Tremendationally in the last 2 years again and the number has still restricted at 40 odd percent. So Maybe as part of the current year's annual report is almost done, but maybe as part of the annual reporting, we would try to give this some color on this. Okay. The second query I had, Dinesh, was, you know, like, I repeat, slide 32 is very, very useful. Is it possible for you also to share going forward what is the percentage renewal rate of Subscription of your top 10% suppliers? Top 10% customers, the renewal rates are Above 90%. They used to be as high as 94%, 95 In last year ever since the pandemic happened that has come down to about 90 89%. And we have said that the top 10% My question was that can we add that to this quarterly data pack that you're sharing? On the top 10% customer? Yeah. Because again, it's a very good metric to look at operationally. Yeah. We'll definitely note down your suggestion and look at that. Last question I had was, your employees, The product and tech employees, you know, that seems to be flat or going down. Anything to read into that? No. That Otherwise, there have been about 100 odd, but there has been a specific downturn in the last 4, 5 quarters. That has started to increase. So if you really, this quarter itself, that has gone from 119 to 444. And also many of the data a lot of them are now It was the inspiration and confidence that we have a lot more to execute and lot more green grass ahead of us. Thank you very much for holding the confidence. And I would say stay safe and have a nice weekend. Thank you everybody. Thank you everyone. On behalf of IndiaMART, this concludes this webinar. Thank you.