We believe Justdial’s new Android app launched last weekend is a step-jump improvement over the previous version across look and feel, flow, categorisation of Search Plus offerings and newer features.
This, coupled with the launch of an advertising campaign in multiplexes, should allay investor fears of a further delay in the commercial launch of Search Plus beyond September.
Further, our interaction with senior management handling Search Plus execution and Search sales for regions like Mumbai and Madhya Pradesh gives us comfort on execution focus, progress and monetisation possibilities in Search Plus, while maintaining a steady revenue CAGR of 25%+ in the Search business over FY15-19F. Reiterate top pick status.
While there has been a near two-quarter delay in the Search Plus commercial launch, we remain enthused by: 1) the lower likelihood of further delays given the new App launch/start of advertising in multiplexes; 2) Progress on Search Plus, with 28 services live across web/app platforms; 3) Search Plus taking shape as a one-of-a-kind metasearch plus marketplace offering, with tie-ups with third-party platforms for 10 of 28 services and both offline and online players (Flipkart /Snapdeal /Amazon) for online shopping, which will likely aid monetisation possibilities with less capital intensity.