Just Dial Limited: history, ownership, mission, how it works & makes money

A Brief History of Just Dial Limited

Founded in 1999, Just Dial Limited began as a local search engine in India, primarily focusing on providing business directory services. By 2010, the company had grown significantly, reaching a user base of over 50 million unique users and listing over 2.5 million businesses.

In June 2013, Just Dial went public, raising approximately ₹950 crore in its Initial Public Offering (IPO), which was oversubscribed by over 11 times. The IPO price was set at ₹530 per share, and the company was valued at around ₹5,000 crore at the time of listing.

By the end of 2014, Just Dial reported revenues of approximately ₹737 crore, reflecting a growth of 22% year-on-year. Their net profit for the same year stood at around ₹136 crore.

Throughout 2015, Just Dial ventured into newer segments, including offline services and mobile applications, to enhance customer engagement. The company introduced its app, which recorded over 10 million downloads by March 2016.

As of March 2017, Just Dial reported revenues of ₹1,044 crore, marking a boost in revenues by 42% compared to the previous year. Their EBITDA stood at approximately ₹347 crore, with a profit after tax of around ₹146 crore.

In 2018, Just Dial's market capitalization reached over ₹7,000 crore, and they launched various new features on their platform, including voice search. The company also diversified its portfolio by investing in artificial intelligence and data analytics to improve search efficiency and user experience.

By March 2020, Just Dial had a user base of over 130 million and had expanded its business listings to approximately 30 million businesses. The company's revenue for the fiscal year ending March 2020 was around ₹1,178 crore, with a net profit of about ₹74 crore.

As the COVID-19 pandemic impacted many businesses, Just Dial adapted by launching services catering to essential goods and services. In 2021, Just Dial's revenue grew further, reaching ₹1,266 crore, while their net profit increased to approximately ₹121 crore.

In 2022, Just Dial responded to market shifts by enhancing its digital presence and facilitating e-commerce capabilities for local businesses. The company reported a revenue of around ₹1,433 crore, with a net profit of approximately ₹134 crore.

Just Dial continues to evolve and adapt, increasing its focus on customer-centric approaches and investing in technological advancements to maintain its position as a leader in the local search market in India.

A Who Owns Just Dial Limited

Just Dial Limited, a well-known Indian search service headquartered in Mumbai, has seen notable changes in its ownership structure over the years. As of the latest data available from the stock market, Just Dial has a diverse set of institutional and individual shareholders.

Ownership Breakdown

From the above data, it is clear that the promoter group holds a significant stake, contributing to the strategic direction of the company. The FIIs and DIIs combined make up over a third of the total shares, indicating robust interest from institutional investors.

Major Shareholders

The individual shareholders of Just Dial include a mix of retail investors and notable institutional investors. Prominent entities often include:

• Reliance Capital Trustee Company Limited
• HDFC Asset Management Company Limited
• SBI Mutual Fund

As of the latest reports, the total number of shares outstanding for Just Dial stands at approximately 73,73,92,826.

Recent Changes in Ownership

In recent years, Just Dial has witnessed fluctuations in its shareholding patterns. Post the COVID-19 pandemic recovery phase, the company experienced a 22% growth in stock prices, reflecting investor confidence. The company’s market capitalization sits around ₹4,600 crores, with stock trading around ₹62 as of October 2023.

The strategic moves by institutional investors to increase their holdings during this period suggest a positive outlook on the company’s growth trajectory in the digital search space.

Furthermore, Just Dial’s entry into new business verticals, including hyperlocal services and e-commerce, could potentially attract more institutional interest and alter the ownership landscape in the coming quarters.

Overall, Just Dial Limited's ownership is a complex interplay of promoter, institutional, and retail interests, creating a robust foundation for its operations and future growth.

Just Dial Limited Mission Statement

Just Dial Limited aims to provide comprehensive information solutions to businesses and consumers. Their mission is to connect users with local service providers through a diverse range of online and offline media, enhancing the customer experience by offering accurate and timely information.

The mission emphasizes values such as reliability, user-friendliness, and continuous innovation. Just Dial focuses on leveraging technology to empower consumers with information that aids their decision-making processes.

The company operates in the digital services sector, specifically in the local search domain, and has established itself as a key player in India. The unique selling proposition revolves around providing a platform that integrates search, promotions, and advertising for small and mid-sized businesses.

Key components of their mission include:

• Providing accurate, reliable, and comprehensive local search services.
• Empowering businesses with tools to reach prospective customers.
• Enhancing user experience through continuous technological advancements.

Recent Performance and Financial Data

As of the latest financial reports for the fiscal year ending March 2023, Just Dial has shown considerable growth. The company reported total revenue of INR 590 crores, reflecting a year-on-year increase of 25% compared to the previous fiscal year. This growth demonstrates the effectiveness of their mission in connecting users with local businesses.

In terms of profitability, Just Dial reported a net profit of INR 92 crores for the same period, representing a significant growth rate of 30% from INR 70 crores in the previous fiscal year.

Key Financial Metrics

Just Dial has also invested heavily in marketing initiatives, with an expenditure of approximately INR 80 crores in FY 2023, facilitating broader reach and increased brand awareness. Their digital marketing strategies have particularly focused on social media platforms and Google Ads, contributing to user engagement and traffic growth.

Moreover, the company's user base has expanded significantly, with reported monthly unique visitors increasing to around 150 million as of March 2023, compared to 120 million in March 2022. This broad user base supports their mission by ensuring that businesses can connect with a larger audience, enhancing the overall value for service providers listed on their platform.

Strategic Initiatives

To align with their mission, Just Dial has pursued several strategic initiatives. These include:

• Enhancing platform capabilities with artificial intelligence to improve search functionalities.
• Expanding partnerships with local businesses to enrich the service offerings.
• Developing mobile applications to provide better accessibility for users on the go.

Overall, Just Dial Limited's mission statement underpins a strategic focus on user engagement, technological advancement, and local business empowerment, which are reflected in their robust financial performance and market presence.

How Just Dial Limited Works

Just Dial Limited operates primarily as a local search engine in India, facilitating user inquiries across various services and products. The company connects businesses with consumers and provides comprehensive information. In the fiscal year 2022-2023, Just Dial reported a revenue of ₹1,007 crore, marking a growth of 11.3% compared to the previous fiscal year.

The revenue model is predominantly advertisement-based, where businesses pay to be featured prominently on Just Dial's platform. As of March 2023, the company had over 43 lakh listed businesses across numerous categories, showcasing its extensive database.

The platform receives approx. 10 million queries daily. Just Dial operates through multiple channels, including its website, mobile app, and a 24/7 customer care service accessible via phone. Users can search for services, products, and local businesses, receiving instant results based on their queries.

Just Dial’s user experience is enhanced through a tiered listing system, where businesses can choose from various subscription plans to increase their visibility. The pricing for these plans varies significantly, catering to both local vendors and larger enterprises.

For the quarter ending September 2023, Just Dial reported a net profit of ₹50 crore, equating to a profit margin of approximately 5%. The total expenses during the same period were ₹700 crore, a rise attributed to increased marketing and promotional efforts.

The company's operational metrics reflect sustained growth in user engagement. In 2022, the average session time on the Just Dial app was approximately 7 minutes, indicating strong user interest and interaction. Moreover, the mobile app has surpassed 10 million downloads on Android, further solidifying its reach.

The company's business model also includes partnerships with various local businesses, allowing them to engage with potential customers through Just Dial's platform. This mutually beneficial relationship has facilitated a steady increase in the number of listings.

Moreover, Just Dial has been investing in technology to improve search results and user experience, with a focus on artificial intelligence to enhance service personalization. The future outlook aligns with ongoing digital transformation trends in India, anticipating further growth in both user base and business listings.

As of Q3 2023, Just Dial's employee strength stood at around 1,200, reflecting a robust internal structure to support its operations and customer service. The company's market capitalization was reported at approximately ₹7,000 crore, indicating a favorable position in the Indian stock market.

How Just Dial Limited Makes Money

Just Dial Limited operates primarily as a local search engine in India, connecting users with local businesses. The company's revenue model is multifaceted, deriving income from various sources.

One significant revenue stream for Just Dial is its paid listings. Businesses pay for enhanced visibility on the platform, allowing them to stand out in search results. As of FY 2023, Just Dial reported that paid listings accounted for approximately 69% of its total revenue.

Additionally, Just Dial offers a range of value-added services. These include SEO services, website development, and digital marketing. In FY 2023, these services contributed 12% to the overall revenue.

An important aspect of Just Dial's business model is subscription fees from businesses for premium memberships. This allows companies to access advanced features and analytics. As per the latest financial data, subscription revenue made up about 18% of the total revenue in FY 2023.

Here’s a breakdown of Just Dial's revenue sources with specific financial figures:

Furthermore, in FY 2023, Just Dial recorded a total revenue of approximately INR 716 Crores, showcasing a growth of 8% year-over-year. This growth can be attributed to increased digital adoption and a higher number of businesses seeking online visibility.

Another pivotal revenue driver is Just Dial's mobile application, which has seen substantial user growth. By Q3 2023, the app boasted over 25 million downloads and a user base that has steadily increased engagement, enhancing ad revenue potential from local businesses targeted through the app.

Just Dial also monetizes through advertisements on its platform. This includes banner ads, sponsored listings, and promotional content, contributing to its overall income. In FY 2023, advertising revenue was estimated to reach INR 100 Crores, reflecting an increasing trend towards digital advertising.

In summary, Just Dial's diversified revenue strategy, coupled with a strong focus on digital transformation and enhanced service offerings, has positioned the company well within the expanding Indian digital landscape, allowing for continued revenue generation amidst competitive pressures.