Marriages might or might not be made in heaven, but for Indians looking for life partners, even the sky doesn’t seem to be the limit. While the average visitor to Matrimony.com, which re-filed its draft red-herring prospectus (DHRP) for an initial public offering (IPO) on Monday, used to scan through about 200 profiles two years back, he/she is now not content even with 500.
This reflects the more than 100% jump in the number of pages viewed by people visiting the portal. In fact, people seem to be spending more time looking for their prospective life partners, and perhaps more choosy too, as the time that visitors to the portal has doubled from 88 minutes a year ago to 164 minutes now.
This is reflecting in company’s financial performance too. Matrimony.com has made a net profit of nearly Rs 44 crore against a loss of Rs 75 crore for the year ended March 31, 2017, while the company’s revenues soared 15% to Rs 293 crore during the year. In its second attempt at the IPO, the company is raising `130 crore as fresh issue. It wanted to raise Rs 350 crore the last time.
According to a KPMG study mentioned in the company’s draft offer observed that as of 2016, there were approximately 373 million individuals in India within the marriageable age bracket, being 18 to 35 years for females and 21 to 35 years for males, of whom 107 million were unmarried.
In fact, 59% of the unmarried population in India falls within the ages of 18 to 24 years, being the age group in which the majority of the Indian population gets married. In addition, approximately 40% and 60% of the 107 million unmarried individuals are located in urban and rural areas, respectively.
In what is considered to be one of the largest marriage markets in the world, India is estimated to have about 65% of its population under the age of 35 years. So, assumption is that the young base will get married in the next two decades and result in an average of 11 to 13 million weddings per year until 2021.
The vastness of the marriage market in India can be understood from the fact that there were 11.70 million marriages that took place in India in 2016, which means about 23.40 million individuals got married in India in 2016. Further, it is estimated that in 2016, of the 107 million individuals in India who were unmarried, there were approximately 63 million individuals in India who were actively seeking prospective life partners.
Based on the KPMG Report, the population within the marriageable age bracket in India will grow at an average rate of 0.84% until 2021 and that around 60.5 million weddings will take place in India from 2017 to 2021. Further, the increasing penetration of Internet and mobile telephony is expected to boost this market even more.
In fact, the internet penetration for the age group of 18 to 35 years is twice the internet penetration for India. This increase in internet penetration is expected to translate into an increased base of internet users and mobile internet users for this age group.
Further, it is estimated that these two factors will lead to an increase in the active user base from 6.0 million in 2016 to 8.7 million in 2020 in a base case scenario. The active user base for online matchmaking could also increase to 12.80 million in 2020 if there is a shift from offline to online channels for matchmaking.
The company which is into matchmaking obviously benefits the longer its clientele stays unmarried, but it surely must be hoping that investors commit to the shares instead of being non-committal.