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Justdial brushes aside competition, posts profit in Q1 2019

Aug 22, 2018 by Rashi Varshney
Justdial brushes aside competition, posts profit in Q1 2019

Hyperlocal search engine Justdial Limited has reported a year-on-year (YoY) growth of 24.6% in its unique visitors at the end of its first fiscal quarter ending June 30, 2018 (Q1 FY 2018-19). Most of its traffic is from mobile platforms, which is 73.7% of the total traffic.

Justdial app downloads at the end of the quarter stood at 20.8 million, up by 34.9% YoY and 4.7% QoQ. The company said that it had registered an average 14,351 app downloads per day during the quarter.

The company posted a net profit of Rs 38.5 crore (USD 5.5 million) for the quarter representing flat year-on-year growth of 1% and a marginal dip of 1.1% QoQ. The company’s operating revenue witnessed 11.3% YoY, and 5.5% QoQ growth at Rs 211.4 crore.

In an earning call for the quarter, Justdial CFO Abhishek Bansal said the company had about 76 million unique users eight quarters back but and have “added 50 million users” in the next two years.

At the end of Q1 FY2019, total active listings on Just Dial’s platform stood at 22.7 million, up 20.7% YoY and 4.3% QoQ. Justdial saw an addition of 943,367 new listings to its database during the quarter.

Google Eyes Justdial Business

Justdial competes with the likes of Urbanclap, Zimber, Taskbob, and Google’s Aero App for its hyperlocal segment, but after its diversification, it also competes with vertical-specific apps pertaining to restaurants listing, payments, cab aggregator apps and others.

However, it is the Internet big brother Google that poses the biggest competition. Google itself offers hyperlocal listing services through its search service. Responding to questions on the competition with the behemoth, CEO VSS Mani said, “There is significant competition from vertical players; on the other hand, it is right to say that there is no direct competition. No single vertical contributes more than 3% to 4% of our revenues. So to that extent, we are extremely well diversified.”

Interestingly in November last year, a section of the media had reported that Google was in talks with Justdial to acquire the company’s listings database. However, there is no confirmation

on this development yet.

Responding to another investor’s question on competition in vertical apps like Zomato or Swiggy, the CEO said that the market is huge and that the largest share of the Indian population is not that lifestyle oriented. “Therefore, for them the frequency of a restaurant look-up is much less. For them, they are settled with Justdial and they are pretty happy with it,” Bansal VSS Mani claimed.

He further added that the gap between the vertical products and Justdial has narrowed. “Now as you move forward, there will be hardly a difference between vertical and a local search engine like us. So, at some point, the users want to converge and use one platform to do multiple things and that’s what we see happening,” Mani added.

https://cdn.thepassage.cc/filters:quality(70)/public/image/2018/08/justdial.png

Image Courtesy: Justdial

From a dial-in company to an e-com platform

Started in 1996 as phone-based local search service company, the bootstrapped Mumbai-based Justdial has now diversified to online aggregation business with a host of services like creating websites for SMEs, allowing businesses to accept digital payments from their customers via JD Pay, reviews and ratings, and JD Social, a social media platform with curated content for businesses.

During the quarter, the company revamped its mobile site and its app. It has released its revamped iOS app this month and said that the Android app is on its way soon.

“Our goal is to have users engaged with us on a more regular basis than what it is till today. So, the new iOS app will give you a flavour of that, and that will be the kind of strategy going forward,” CEO Mani said while asking users to check out the IOS app.

The company has been investing heavily on its mobile app, which also offers services like news, live TV streamings, chat messenger.

The Justdial app also lets users to book flight, train, and bus tickets. It also allows booking movie tickets, facilitates online shopping, hotel bookings besides allowing payment of a host of utility bills. The app also allows users to apply for loans.

Rashi Varshney

Rashi Varshney is a Delhi-based tech reporter. She focuses on emerging Indian startups and unicorns. She can be reached at rashi.varshney@thepassage.cc

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