Bessemer will exit Matrimony.com during IPO: Murugavel Janakiraman

Interview with Founder and CEO, Matrimony

Matrimony.com Ltd, one of India's oldest consumer internet firms, is planning to raise Rs 550 crore in an initial public offering (IPO) by December. Murugavel Janakiraman, founder and chief executive, had to bootstrap the venture till it raised funds from Yahoo! jointly with Canaan Partners and Mayfield in 2006. So far, Matrimony has raised around Rs 100 crore from investors. Yahoo! exited the firm in 2011, offloading the shares to Bessemer Venture Partners, while Canaan's stake was taken by JPMorgan. "Around 60 million people look for life partners in India every year, but the number of people using online is only five million," Janakiraman tells Raghu Krishnan. Edited excerpts:

How are you different from Shaadi and other matrimonial sites?

We are everywhere, not limited to a particular market. We had adopted a different segmented strategy very early on, with multiple sites that target region and multiple communities and their sub-sects. In India, 95 per cent of marriages happen within the community, according to data from the National Council of Applied Economic Research. We are the leaders in the matrimony market.

What is the status of the IPO?

We've got the approval. We had to get certain things done. In the US, we had a litigation, which we settled. We are in the process of filing a draft red herring prospectus update and in the next four to six weeks, we'll have the IPO.

How much are you raising? Will your investors remain or exit?

We are raising around Rs 550 crore, of which Rs 350 crore will go into the company. Bessemer Venture has offered 1.66 million shares. It bought the shares of Yahoo!, when the latter exited. Mayfield and JPMorgan Partners (JPMorgan acquired Canaan Partner's stake) will be there.

You're among the oldest consumer internet companies in India. Are you vindicated for betting on the India story?

We started in India around 2000. I had started it in 1997, when I was in the US to help Indians find life partners. We bootstrapped the company and our first funding came only in 2006 after many rejections. The initial days were tough. People were not aware about it and internet speed was not good those days. Now, we are the No 1 site for people seeking life partners.

How much do the online and offline businesses contribute to your revenue?

Most people come online and create a profile. Then, they upgrade to a premium model, where we charge a basic subscription fee. The retail outlets tap parents, tell them of the services and provide assisted match-making. We have relationship managers for them. Around 40 per cent of the payments are through doorstep collections. Once people create their profile online, we have 1,500 tele-callers who reach out to customers and educate them to improve their profiles to get better response. And, ask them to upgrade to premium service.

What happens when Google competes with you in matrimony?

Around 60 million people look for life partners in India every year, but the number of people using online is only five million. There is so much headroom for growth. In India, many aspects such as religion, community and horoscope have to be fulfilled before a person can choose a life partner. So, only a vertical category player can win in this space.