Management Discussions

Statements in the Management Discussion and Analysis describing the Company?s objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. This involves risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. The Company does not undertake to update any such forward-looking statements unless it is required by law. The discussion and analysis should be read in conjunction with the Company?s financial statements included in the Annual Report and the notes thereto. This discussion is based on the consolidated financial results of the Company.


The global economy is witnessing signs of resilience and recovery in 2023 after the sharp economic slowdown in 2022. The slowdown is expected to be less pronounced in 2023 than previously anticipated. However, geopolitical instability, the Russia- Ukraine war, lingering supply chain challenges, higher inflation, tighter monetary conditions and interest rate hikes impacted global economic growth in 2022. The longer than expected war between Russia and Ukraine will continue to weigh on economic activity and contribute to soaring fuel and commodity prices in 2023. Despite the headwinds, the real GDP grew in the United States, the European Union, and major Emerging Market and Developing Economies (EMDE). The International Monetary Fund (IMF) has projected global growth to decline from 3.4% in 2022 to 2.9% in 2023 and rise to 3.1% in 2024. The growth of advanced economies is projected to decline sharply from 2.7% in 2022 to 1.2% in 2023 before rising to 1.4% in 2024. The emerging market and developing economies also grew at an estimated annual rate of 3.9% in 2022 and are projected to grow to 4.0% in 2023 and 4.2% in 2024.


Though the global economy is suffering from underlying inflation pressures, the outlook is less disappointing than previously projected. According to the IMF, global financial conditions have eased since October 2022. With the central banks? efforts to curb inflation by tightening monetary policy and hiking the interest rates, global inflation is projected to decline from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024. The global economy is expected to pick up modestly in 2024, as inflationary pressures are expected to abate and energy markets are expected to stabilise. Emerging economies are expected to dominate global economic growth in 2023. China and India are expected to be the major contributors to the growth and are expected to account for 50% of the global economic growth in 2023.

(Source: IMF World Economic Outlook, January 2023; U. S. Bureau of Economic Analysis; World Bank Report- Global Economic Prospects, January 2023)


India continues to be among the fastest-growing economies in the world in FY 2022-23. Despite external exogenous shocks, the Indian economy registered healthy growth in FY 2022-23. As per the second advance estimate of National Income FY 2022-23 released by the National Statistical Office (NSO), the growth in GDP during 2022-23 is estimated at 7.0% as against 9.1% in FY 2021-22. The accelerated pace of economic reforms has led to the higher and more sustainable growth of the Indian economy and strengthened its position in the world.

Higher inflation remains a challenge throughout FY 2022-23. The Reserve Bank of India (RBI), in its efforts to control inflation and boost economic growth, has increased the repo rate by 250 basis points in FY 2022-23. Further, in the Union Budget 202223, the government focussed on giving the necessary push to the economy with an increased allocation of 7 10 lakh crore for infrastructure development. As per the Budget, India?s export is expected to grow at 12.5% in 2023, which will further boost the economy. Moreover, the combined Index of Eight Core Industries (ICI) increased by 6.0% (provisional) in February 2023 as compared to the Index of February 2022. The industrial sector witnessed a modest growth of 4.1% in FY 2022-23 compared to the strong growth of 10.3% in FY 2021-22 on account of increasing input costs, supply chain disruptions, and a slowdown in the global economy. However, India?s IIP growth of 5.2% Y-o-Y and 3.7% growth in the manufacturing sector in January 2023 present signs of optimism for the economy.


The outlook remains robust and the Indian economy is expected to advance steadily in 2023. The IMF projects the Indian economy to expand at 6.1% in FY 2023-24 before rising to 6.8% in FY 2024-25. The optimistic growth stems from positive factors such as the rebound of private consumption, increased production activity, rapid infrastructure development, industrial development, improvement in capacity utilisation, and revival in credit growth. However, there remains considerable uncertainty due to the fragile global economic conditions.

(Source: National Statistical Office, Reserve Bank of India, World Bank Report- Global Economic Prospects January 2023, Ministry of Statistics and Programme Implementation, Ministry of Commerce and Industry,,, IMF Report- World Economic Outlook Update January 2023)


India has developed a strong foundation of digital infrastructure and expanded internet access across the country. India has been digitalising at a rapid pace driven by factors such as growing broadband penetration, technological advancements, low costs of data usage, and the government?s focus on enhancing digital infrastructure and internet accessibility. In the Union Budget 2023-24, digitisation has been a major focus area. The government?s flagship programme ‘Digital India? has received a push with an outlay of 7 4,795.24 crore in the Budget as part of the governments vision to transform India into a digitally-empowered society and to create a technology-driven and knowledge-based economy. Another initiative is the establishment of three dedicated centres of excellence for artificial intelligence (AI) to promote the creation and use of AI in India. The government has been taking proactive measures to develop public digital infrastructure. Further, the rapid growth of the information technology (IT) industry has driven the digital revolution in India. India has witnessed significant progress in financial inclusion in recent years with expanded access to banking and financial services through digitisation, digital identity Aadhaar, Unified Payments Interface (UPI), and other initiatives such as e-RUPI, TReDS, Account Aggregators, ONDC, etc. Further, DigiLocker and MyGov which offer a paperless ecosystem, and Co-Win for the wide-scale vaccination in the country are important milestones in India?s public digital infrastructure. Strong digital infrastructure and widespread adoption of technology will further bolster Indias vision of a $1 trillion digital economy by 2025.

(Source: InvestIndia, IBEF, Economic Survey 2022-23)

• Increasing internet and smartphone penetration

According to the Telecom Regulatory Authority of India (TRAI), India recorded 832.20 million active internet users as of 31st December, 2022. As per Cisco?s Annual Internet Report, India?s internet user base is expected to cross 907.4 million by 2023. A total of 1.10 billion cellular mobile connections were active in India in early 2023, with this figure equivalent to 77% of the total population. Broadband usage in India has been growing at an unprecedented pace. India provides the lowest price for per GB of data consumed, with an average cost of 7 50 (US$ 0.6) per GB. India also has the highest data consumption in the world, with an average per-user consumption of 14.1 GB. The government?s initiatives like BharatNet Fibre project and investments in developing 5G and 6G infrastructure aim to provide affordable and quality Internet to the citizens.

(Source:, IBEF)

• Thriving Start-up culture

India is the third-largest tech start-up ecosystem in the world after China and the United States. Indias digital ecosystem has witnessed significant growth, backed by a thriving startup culture. Digitisation provided an impetus to the emergence of the start-up ecosystem and entrepreneurship among the young population. In Union Budget 2023-24, the government has proposed to provide tax incentives and extend the period of incorporation of eligible startups by one more year till March 31, 2024.

As per NASSCOM (National Association of Software & Services Companies) Tech Start-up Report 2022, 1,300 new tech startups and 23 new unicorns have been added to Indias tech ecosystem in CY 2022. Indian start-up ecosystem raised $ 24 billion in CY 2022, which is ~33% less (YoY) as compared to $35 billion in CY 2021. Despite a decline in overall funding in CY 2022, funding into early-stage deals grew by nearly 12%. Indian startups raised a total of $ 3 billion in Q1 CY 2023, which is 75% less (YoY) compared to the $12 billion raised in Q1 CY 2022. The government has taken several initiatives to strengthen the start-up ecosystem in the country including the flagship schemes, Startup India Seed Fund Scheme (SISFS) with a corpus of 7 945 crore for the next 4 years starting from FY 2021-22, Fund of Funds for Startups (FFS) with an allocation of 7 10,000 crore and Credit Guarantee Scheme for Startups (CGSS).

(Source: NASSCOM Tech Start-up Report 2022, PwC Report- India start-up deals tracker CY22, Ministry of Commerce & Industry)

• Rise in the number of social media users

The number of social media users in India was 467 million in January 2023, equating to 32.8% of the total population. 26.5% of India?s social media users were female, while 73.5% were male. An average user spent 2.8 hours daily on social media. The rapidly increasing number of social media users and increasing time spent are likely to boost the demand for online matchmaking services.


INDIAN MATRIMONY MARKET Large youth population in India

India is the second-most populous country in the world with a population of 1.42 billion as of January 2023, registering a 0.81% y-o-y growth over the previous year. 48.4% of India?s population is female, while 51.6% of the population is male. India has one of the youngest populations in the world, with a median age of 28.2 years. India?s large young population and rapid pace of urbanisation are expected to propel the growth of the online matrimony market.

Online matrimony market in India

The wedding market in India has witnessed a surge with 3.2 million wedding events organised between November 2022- February 2023 and generated business of ~7 3.75 lakh crore. The wedding market in India will continue to flourish owing to the huge population in the marriageable age bracket. Increased digital adoption and penetration of the internet have accelerated the growth of the online matrimony market in India. More young Indians prefer a matrimonial site rather than a traditional approach. Emerging markets such as tier-II and tier-III cities are likely to create ample growth opportunities for the market, owing to the increasing number of social media users, changing consumption patterns, improved living standards, increasing use of digital payment methods such as UPI (United Payments Interface), Paytm, etc. for buying a paid membership.

(Source:,, ICICI Direct, Money Control, Statista)

As per our Online Matrimony Trends Report 2022, around 280 million members logged in during 2022 from India and abroad. An average of 13,000 interactions per minute happened between members to find their life partner. Further, the Report highlights some of the emerging matrimony trends in 2022 such as Sundays being the most active days and singles between the age group of 25- 29 years comprising the majority of the overall users.

Strengths and Opportunities

Market position and brand recall: The Company has a rich legacy and experience of more than 2 decades in matchmaking services. Leveraging this, it has emerged as the frontrunner in the matchmaking business in India, servicing its customers via websites, mobile sites, mobile apps and an active on-the-ground network. As of 31 March 2023, the paid profiles of the Company stood at 9.94 lakhs compared to 8.94 lakhs on 31 March 2022, registering an 11.19% y-o-y growth. Due to the strong brand recall, the Company has a majority market share of 60% in the online matchmaking space in India.

Micro-market strategy: The Company has been a pioneer to cater to the unique regional and community matchmaking requirements of Indian consumers as well as offers customised and targeted services.

One-stop shop: The Company has forward integrated to provide marriage services across the value chain. Its WeddingBazaar online marketplace provides wedding-related services. On the other hand, is a wedding venue booking platform, which provides facilities to book mandaps, banquet halls, and convention halls across the country. With the integration of ShaadiSaga complete, the Company is ready to capitalise on the combined strengths to lead the wedding services business to newer heights with over 200,000 vendors in 40 cities.


The following table gives an overview of the consolidated financial results of the Company:

Particulars FY 2022-23 % to total FY 2021-22 % to total Growth %
Lakhs income Lakhs income
Revenue from Operations 45,576.92 98.38% 43,449.56 99.32% 4.90%
Other income 751.13 1.62% 297.85 0.68% 152.18%
Total income 46,328.05 100.00% N=RIGHT>43,747.41 100.00% 5.90%
Employee benefit expenses 14,409.60 31.10% 13,231.69 30.25% 8.90%
Advertising and business promotion expenses 18,230.62 39.35% 16,212.10 37.06% 12.45%
Other expenses 6,193.19 13.37% 5,308.00 12.13% 16.68%
Total expenses 38,833.41 83.82% 34,751.79 79.44% 11.75%
Earnings before interest, tax, depreciation, and amortisation (EBITDA) 7,494.64 16.18% 8,995.62 20.56% (16.69%)
Depreciation & amortisation 2,997.21 6.47% 2,690.68 6.15% 11.39%
Finance cost 590.75 1.28% 536.00 1.23% 10.21%
Finance income (1,687.32) (3.64%) (1,496.23) (3.42%) 12.77%
Profit before tax and share of profit/ (loss) from associate 5,594.00 12.07% 7,265.17 16.61% (23.00%)
Share of profit/ (loss) from associate, net of taxes (0.96) - (78.95) (0.18%) 98.78%
Profit before tax (PBT) 5,593.04 12.07% 7,186.22 16.43% (22.17)%
Tax Expense 925.80 2.00% 1,827.07 4.18% (49.33%)
Profit after tax (PAT) 4,667.24 10.07% 5,359.15 12.25% (12.91)%

Revenue: Overall revenue grew by 4.90% for the year. The revenue distribution is through two segments such as Matchmaking and Marriage services. The segment-wise performance is given in the table later in the discussion. Matchmaking comprises 97.86% of revenues and grew by 3.64% in FY23 as compared to a growth of 14.54% in FY22. The matchmaking billings grew by 3.94% in FY23 as compared to 12.23% in FY22. The key drivers for this business are the number of paid profiles and Average Transaction Value (ATV). The paid profiles are at 9.94 lakhs, an increase of 11.14% over the previous year. ATV is at 7 4,493, a decrease of 6.50% over the previous year as part of the pricing strategy. The Company typically has subscription packages ranging 3 months, 6 months and 1 year and the subscription billings are recognised as revenue over the subscription period.

Other income: Other income mainly includes profit on the sale of assets held for sale amounting to 7 581 lakhs and notional gain from closure of leased locations accounted under Ind AS 116 "Leases".

The Company had in 2017, purchased land for construction of office premises, out of the proceeds from the fresh issue of equity shares during its initial public offering (‘IPO?). The entire IPO proceeds were fully utilised and confirmed by the monitoring agency?s report. However, the management decided not to pursue the construction of office premises post the COVID-19 pandemic. Accordingly, the Board of Directors and the Shareholders of the Company approved the change in objects on March 31, 2022 and May 08, 2022 respectively, enabling the Company to sell the land. During the year ended March 31, 2023, the Company completed the sale of land for a gross total sale consideration of 7 4,941 lakhs. Accordingly, the Company has recognised a profit of 7 581 lakhs on account of such sale during the year ended March 31, 2023.

The consideration realised from the sale transaction has been deposited into a separate bank account and such amount will be utilised for marketing expenses, as approved by the Board of Directors and the Shareholders. Further, the Company has appointed a monitoring agency to oversee the utilisation of the sale proceeds in accordance with the approval of Shareholders. During the quarter and year ended 31st March 2023, the Company had utilised 7 1,187 lakhs towards marketing expenses out of the sale proceeds 7 4,892 lakhs (net of TDS) and 7 3,705 lakhs remain unutilised at the end of the period.


Employee benefit expenses: Employee benefit expenses have increased by 7 1,177.91 (8.9% higher than PY) lakhs mainly due to yearly increments in salary and an increase in staff welfare expenses.

Advertising and Promotion Expenses: We increased our marketing initiatives significantly during the year by 7 2,018.52 lakhs, comprising both online and offline segments. These are ongoing investments to fuel future growth and increase brand visibility.

Other expenses: Other expenses mainly comprise IT, infrastructure, administration, legal and professional fees which have increased by 7 885.19 lakhs. This was mainly due to an increase in expenses in IT-related costs majorly due to an increase in web hosting expenses, tech fees, SMS and domain charges (7 540.37 lakhs), an increase in Infrastructure management (mainly repairs and maintenance, office upkeep expenses of 7 201.32 lakhs), increase in travelling expenses (7 95.39 lakhs) and increase in other admin expenses (7 83.13 lakhs). This was offset by the decrease in legal and professional expenses (7 23.85 lakhs) and communications expenses (7 11.17 lakhs). Overall, as a % of total income , it has increased by 1.24% as compared to the previous year (13.37% in FY 23, 12.13% in FY 22).

EBITDA margins: Our EBITDA margins are at 16.18% as compared to 20.56% in FY22, indicating a decrease of 16.69%. This is mainly due to an increase in advertising expenses. Excluding advertising expenses, EBITDA margins are at 55.53% as compared to 57.62% in FY22.

Finance income: Finance income consists mainly of income from investments of surplus funds in fixed deposits, mutual funds and tax free bonds. The increase in income is due to an increase in FD interest rates during the year and an increase in the yield of mutual funds.

Finance cost: Finance cost mainly consists of notional interest on lease liabilities charged to PL as per Ind AS 116.

Effective Tax Rate (ETR): The effective tax rate is at 16.55% in FY 23 as compared to 25.42% in FY22. The decrease in ETR is mainly driven by a lower tax on realised gains on mutual funds due to the buy-back explained below and land sale (taken as long-term with indexation benefit).

Buyback of Equity Shares:

The Board of Directors at its meeting held on May 12, 2022, approved a proposal to buyback up to 6,52,173 equity shares of the Company for an aggregate amount not exceeding 7 7,500 lakhs, being 24.24% and 24.36% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the audited standalone and consolidated financial statements respectively as at March 31, 2022, at a price not exceeding 7 1,150 per equity share subject to approval from shareholders. Subsequently, on June 18, 2022, the shareholders approved the buyback of equity shares and on June 22, 2022, the buyback committee of the Board of Directors approved the final buyback price of 7 1,150. The record date for determining the buyback entitlement was determined to be July 4, 2022, and the tendering period for the buyback commenced from July 26, 2022 to August 08, 2022. The Company completed the buyback of shares by August 22, 2022, and extinguished the shares by August 26, 2022. The Company paid tax on buyback of 7 1,740 lakhs and incurred 7 131 lakhs as expenses towards the buyback of equity shares. The aforesaid tax on the buyback and expenses are accounted as a reduction from the equity during the year ended March 31, 2023.

Profitability: Our PAT margins are at 10.07% as compared to 12.25% in FY22, indicating a decrease of 12.91%.


The following tables give an overview of the segment performance of the Company:

Revenue FY 2022-23 (Rs lakhs) FY 2021-22 (Rs lakhs)
Matchmaking Services 44,602.50 43,036.44
Marriage Services 974.42 413.12
EBITDA FY 2022-23 (Rs lakhs) FY 2021-22 (Rs lakhs)
Matchmaking Services 9,553.71 11,171.56
Marriage Services (1,300.46) (955.30)


The Company has identified the following ratios as key ratios:

FY 2023 FY 2022
EBITDA margin 16.18% 20.56%
Net profit margin 10.07% 12.25%
Return on Net worth 16.57% 18.68%


The Company spent 7 647.64 lakhs as capital expenditure and spent 7 9,371.28 lakhs towards the buyback of equity shares (including tax and expenses on buyback) during the year. Consequently, the Company generated a free cash flow of 7 5,071.35 lakhs of cash during the year taking the cash balance as at 31st March 2023 to 7 32,453.91 lakhs. The EBITDA to operating cash flow conversion has been strong at 0.76 times and EBITDA to free cash flow is at 0.68 times.


The total number of employees (excluding subsidiaries and associates) as of 31st March 2023 is at 3,172 as compared to 3,405 as of 31st March 2022.


The key strategic focus areas for FY 2023-24 are as follows:

• Sharper segmentation to make sure all customer needs are addressed adequately and thereby improving conversion

• Driving growth through new initiatives for all products

• Consistently improve product differentiation in line with customer behaviour and trends

• Capitalise on the fully integrated wedding services business to drive accelerated growth


Risk Management is an integral part of the Company?s strategy and planning process. Based on the proactive identification of risks, action plans are devised to mitigate the risks that could materially impact the Company?s long-term sustainability. Mitigation plans with identified owners are set against target dates and progress of mitigation actions is monitored and reviewed. The Company has in place a robust risk management framework to identify, assess, monitor and mitigate risks that threaten the Company. The Risk Management Committee of the Company is tasked with identifying and mitigating risks. The Committee reports to the Board of Directors who sit at the apex of the corporate governance framework.

Some of the risks identified and mitigated by the Company during the year under review are as follows:

Risk Description Mitigation
Business risk Newer launches / strategies may not accelerate as desired and new regulations can hamper Company?s ability to accelerate profits. We have defined new initiatives for all the new launches and we will continue to experiment and calibrate to reach the desired state of performance. We will continue to take up our cause at appropriate forums if any new regulations are detrimental to the business environment.
Competition risk Competition can significantly affect the Company?s market position, pricing and margins. The Company has relied on a differentiated strategy on all fronts such as segmentation, pricing, new domains, new launches and has remained a market leader. We have adopted newer marketing strategies through differentiated campaigns that has further helped our positioning.
Cybersecurity risk Network failure and data breaches can impact the operations of the Company extensively. Being an established player in the online matchmaking sector, it is crucial for the Company to ensure that its systems are safe from cybersecurity risks. The Company undertakes periodic vulnerability assessments and audits through internal audit mechanism to detect and proactively mitigate any such risks.