Info Edge Founder on What Makes a Marketplace Scalable
Info Edge founder Sanjeev Bikhchandani shared his key characteristics for a scalable business like a marketplace. He highlights the need for a large opportunity, early entry, IP creation, market power, and high operating leverage. He cited Naukri's ability to convert 90% of incremental revenue to its bottom line as a prime example.
Bikhchandani's core insight for Naukri.com wasn't a complex algorithm, but a simple observation: colleagues were more interested in the job ads in magazines than the articles themselves. This focus on a "high-interest category of information" demonstrates his principle of identifying deep, unsolved customer problems before building. Info Edge's strategy has evolved from operator to a hybrid operator-investor, using profits from its core recruitment business to fund other ventures. This model led to early, successful bets in companies like Zomato and Policybazaar, cementing its reputation as a key player in India's startup ecosystem. As of December 2025, the fair market value of its total portfolio was approximately ₹48,000 crore. The playbook for scaling extends to identifying a "repeatable profitable unit." For Naukri, this was a salesperson who, within six months, could generate more than double their monthly cost in revenue, a margin that fueled profitable expansion across 11 cities in two years. This disciplined, frugal approach was honed during the early years of bootstrapping with just ₹2,000. For marketplaces expanding into Tier 2 and Tier 3 cities, the playbook must adapt to logistical hurdles like inconsistent connectivity and inadequate warehousing. Success in these regions, which are projected to contribute 50% of India's e-commerce market by 2026, requires localized strategies rather than replicating metro models. The competitive landscape now includes the pressure of quick commerce, which has reshaped consumer expectations for delivery within 10-30 minutes. This ultra-fast model is projected to grow over 40% annually by 2030, driven by expansion beyond groceries into categories like electronics and apparel. Conversational commerce is a critical channel, with 72% of product discovery now happening on WhatsApp in India. Retailers using click-to-WhatsApp campaigns are seeing a 61% average improvement in return on ad spend, demonstrating the power of transacting within a single chat thread. Government initiatives like the Open Network for Digital Commerce (ONDC) are designed to level the playing field for small sellers. By creating an open and interoperable ecosystem, ONDC aims to reduce the reliance on large marketplace platforms, lower commission fees, and give vendors greater control over their operations.
