The JustDial story is quickly turning out to be the classic David vs Goliath story. It all started with the Justdial IPO. Since then, the company has gotten very ambitious. At first, we feared that the homegrown company’s business will be eaten by Google and other Internet companies. But that doesn’t seem likely if you look at the strong yearly growth it has clocked.
Before we go into boring financials, sample this: JustDial has launched JD Maps during the quarter replacing Google maps for directions on the Justdial platform.
And now, its growing its search plus business. In December 2013, it launched JustDial Search Plus, an online marketplace. What’s interesting is that the company is very close to small businesses and actually gets them to spend on the JustDial platform.
As of March 2014, JustDial was conducting approximately 262,150 campaigns for paid advertisers as compared to 206,500 campaigns as of March 31, 2013, representing a Y-o-Y growth of 27%. And these are mostly offline businesses that Justdial is working with. This is something with which even companies like Google are struggling in India. The fact that JustDial is mostly an advertising business pits it against the likes of Google.
– Desktop drives 63% of overall searches.
– Mobile drives 23% (183% growth Y-o-Y)
– Voice/SMS search is close to 14%
JustDial then announced its intention to launch more Search Plus products, quickly moving into online food ordering and travel and ticketing, some of the hottest e-commerce sectors in the country. (Read: JustDial Enters Online Travel & Ticketing; Why Everybody Must Watch Out).
The company’s foray into e-commerce pits it against the rest of the e-commerce players including the travel and ticketing companies. It is also planning to aggressively grow the Search Plus offering. At the end of the third quarter FY14, it allocated Rs 60- Rs 90 cr on advertising search plus.
In comparison with Google or Amazon, JustDial is still relatively a small company. It posted operating revenues of Rs 461.3 cr for FY14 and a 76% year on year growth in profit to Rs 120.62 cr.