Our impact measurement and management framework in practice: IndiaMart

In a previous Insights piece, we described recent updates to our impact measurement and management (IMM) framework. Here we illustrate some of those using the case study of IndiaMart.

IndiaMart Intermesh Ltd (“IndiaMart”) is India’s largest online business-to-business classifieds platform, with over 7 million MSME suppliers using the platform and 1 billion visits per year[1]. IndiaMart’s success is partly due to its 3,000+ strong on-the-ground sales team who visit MSMEs in person, showing them how to optimise their online ‘shopfronts’, which is particularly valuable in the India context where digital literacy is nascent. Our interviews with MSME suppliers suggest that the businesses gain tangible value, with IndiaMart accounting for up to 25 – 30% of revenues.

Theory of change

Figure 1: Theory of change for IndiaMart, source: Arisaig Partners

Five Dimensions of Impact

The next step is a detailed assessment of impact, where we analyse the company from each of the Five Dimensions of Impact[2] (see earlier Insights piece for further detail). Figure 2 provides a high-level summary of this analysis.

Figure 2: Summary of Five Dimensions of Impact analysis; source: IndiaMart annual reports and investor presentations, Arisaig analysis

Translation into impact scoring

As explained in our previous Insights piece, our updated scorecard considers six categories of impact: Reach, Criticality, Effectiveness, Evidence, Net Impact, and Alignment. In total number, we consider and score 12 impact-related metrics (two under each pillar).

Figure 3: Examples of impact-related metrics for IndiaMart relevant to impact scoring; source: IndiaMart annual reports and investor presentations, Arisaig analysis

Taking into account all 12 impact-related metrics, the overall Arisaig Impact Score for IndiaMart is 74%. The company scores well across all pillars, but particularly in terms of Alignment (reflecting the strong link between IndiaMart’s financial success and its ability to deliver greater value to MSME customers) and Criticality (reflecting the significant barriers to growth faced by India’s MSMEs, particularly in Tier 2 and smaller cities).

Figure 4: Arisaig Impact Score for IndiaMart, source: Arisaig Partners

Identifying engagement priorities

A critical component of our contribution to impact as investors is active engagement with companies, with a view to enhancing positive impact, reducing impact risks and improving management of ESG issues. Over the last three years, we have been impressed with the enthusiasm with which the company has responded to our engagements, as well as the progress made to date.

Figure 5: IndiaMart engagement priorities and progress, source: Arisaig Partners

“Arisaig has been an invaluable partner in our ESG journey, providing us with the guidance, resources, and support …With Arisaig’s expertise and guidance … we are better equipped to learn about the ever-evolving ESG landscape and make meaningful progress towards a more sustainable future.” – IndiaMart’s IR team

Monitoring impact progress

For every holding, we track between 5 and 10 impact KPIs. We have been pleased with the progress that IndiaMart has made to date, steadily building its reach of MSME suppliers by 20% in the last year. We are particularly pleased to see that the proportion of MSME suppliers outside the major cities (which we believe are more underserved) has also steady increased over the last three years.

Figure 6: IndiaMart - % of sellers outside major cities 2020 - 2022; source: IndiaMart annual reports

[1] IndiaMart annual report FY23

[2]  See Impact Frontiers for more information on the Five Dimensions of Impact (https://impactfrontiers.org/norms/five-dimensions-of-impact/).


This material is being furnished for general informational and/or promotional purposes to professional investors only. The views expressed are those of Arisaig Partners and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact, nor should any reliance be placed on them when making investment decisions. This material does not constitute independent research and is not subject to the protections afforded to independent research.

The statements and views expressed herein are subject to change and may not express current views. Arisaig Partners makes no representation or warranty, express or implied, regarding the accuracy of the assumptions, future financial performance or events. Emerging markets are generally more sensitive to economic and political conditions than developed markets and may be more volatile and less liquid than other investments.

All information is sourced from Arisaig Partners and is current unless otherwise stated. Issued by Arisaig Partners (Asia) Pte. Ltd. Not for public use or distribution. Arisaig Partners (Asia) Pte. Ltd is licensed and regulated by the Monetary Authority of Singapore.

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