Indiamart Intermesh, a B2B e-commerce company, announced that it planned to buy a 51% stake in software-as-a-service firm Livekeeping for Rs 45.98 crore in an all-cash deal. According to Indiamart, the acquisition is in keeping with the company’s long-term goal of providing diverse software as a service-based solution for enterprises.
“The company intends to invest up to Rs 45.98 crore approximately in Livekeeping,” Indiamart said in a regulatory filing.
According to the agreement, Indiamart would pay a premium of Rs 51,138 per share for Livekeeping’s 6,843 seed CCPS (Compulsorily Convertible Preference Shares) with a face value of Rs 10 each, aggregating about Rs 35 crore.
It would also purchase 2,147 equity shares in Livekeeping from one of the promoters at the same price for Rs 10.98 crore.
“The final aggregate shareholding of the company, post this investment, in LiveKeeping would be 51.09 per cent on a fully diluted basis,” Indiamart said.
Speaking about the investment, Mr. Dinesh Agarwal, CEO of IndiaMART said “Real time visibility of accounting data like revenue growth, profitability, cash flow management, etc. is a critical yet underserved problem faced by Indian Businesses. Livekeeping has been able to validate an innovative SaaS based solution to this problem. Further, this investment helps complete the IndiaMART ecosystem in the accounting space.”
Adding to this, Mr. Ritesh Kothari, CEO of Livekeeping said “We are excited to partner with IndiaMART in our mission to automate accounting operations. Investment from IndiaMART will enable us to strengthen the product & technology, reach to the higher number of businesses and keep innovating on behalf of our customers. IndiaMART’s understanding of the SMEs and accounting space will play a big role in making this company a huge success.”