Matrimony.com Plans To Use IPO Funds To Expand User Base And Services

The owner of India’s largest online matrimonial portal is planning to use money raised in its upcoming IPO to further expand its user base.

Matrimony.com is aiming to raise Rs 350 crore (US$52.9m) through the IPO, and plans to devote around half of the money to advertising and promotional strategies for its various platforms.

The company’s investment in marketing channels will likely increase competition between its main opposition, like Shaadi.com – the second most popular service in India behind BharatMatrimony.com.

To ensure a growing user base, Matrimony.com are keen to continuously invest in the development of its mobile platforms to further increase its services.

But while main priorities lie with expanding its user base, Matrimony.com is planning to use the remaining IPO funds to better itself in other ways.

According to Business Standard, it plans to dedicate Rs 34 crore (US$5.14m) to the purchase and refurbishment of offices in Indian city Chennai, and a further Rs 28.7 crore (US$4.34m) towards the repayment of overdraft facilities.

It also wants to spend Rs 17.4 crore (US$2.63m) to obtain the hardware/software for a centrally controlled contact centre.

Analysts from Bank of America Merrill Lynch said: “We consider the matrimony business difficult to monetise as apart from being a C2C model, this business largely sees a one-time transaction where the consumer does not come back.”

Find out more about Matrimony.com here.