Losses Widen for 99acres Despite Revenue and Listings Increase

Indian classifieds operator Info Edge has released a report on its operations for the first quarter of the Indian 22-23 financial calendar.

As well as the real estate portal 99acres, Info Edge operates jobs vertical Naukri.com and online matchmaking and education verticals. Notable figures from the company's results for the period include:

• Revenue for 99acres increased 8% to $8.3 million
• Loss before taxes for the real estate portal widened to $4.8 million
• At a company level, revenue increased 35% thanks largely to success in the jobs vertical

Although 99acres represents around 25% of company revenues, the segment remains unprofitable for Info Edge which relies heavily on the success of Naukri.com to generate cash flow. In commenting on the company's quarterly performance, Info Edge CEO, Hitesh Oberoi declined to mention its real estate division, instead praising the recruitment business:

"The recruitment business continues to grow strongly and we remain optimistic for the current qtr [sic] as well."

Although revenues, overall listings and paid listings volumes rose for 99acres over the quarter, the percentage of paid listings on the portal still remains stubbornly fixed at around 55% - much lower than the percentages seen pre-pandemic.

Although in its quarterly report to shareholders Info Edge claims that 99acres continues to be the market leader in India in terms of traffic, the latest traffic stats from Similarweb suggest that it has lost out on top spot over recent months to REA India's Housing.com portal. Although it is true that app visits are an unknown factor here as Similarweb cannot count them.