ZEAL INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION , PUNE.

Concurrent Internal Evaluation [CIE]- 2

Case study preparation on Business model of
Naukri.com

Department: Management Semester: III Academic Year – 2024-25

Course: 301- Strategic Management

Assignment No: 02

Course faculty: Prof. Bagal S R

Date of Submission: 26/09/2024

By, 1] Shriram Kharade [ZM2325074] ZIMCA B

2] Ashok Nagargoje [ZM2325093] ZIMCA B
3] Shubham Sarkale [ZM2325125] ZIMCA B
 Introduction to industry

The recruitment and employment services industry plays a vital role in

matching job seekers with employers. This sector facilitates the process of
sourcing, screening, and hiring qualified candidates for various positions
across industries. With the rise of digital platforms, this industry has
transitioned significantly from traditional methods like newspaper ads to
advanced online job portals such as Naukri.com.

Overview
The recruitment industry encompasses a range of services including job
listings, resume databases, candidate screening, and interview scheduling.
It provides a vital bridge between employers seeking talent and job seekers
looking for career opportunities. Platforms in this sector typically operate
under two business models: Business-to-Business (B2B), where services
are sold to employers, and Business-to-Consumer (B2C), where
candidates may pay for premium services like resume building or enhanced
job visibility

Digital Transformation
In recent decades, the rise of online job portals like Naukri.com,
Monster.com, and Indeed has revolutionized recruitment by leveraging
technology. These platforms offer employers access to vast databases of
resumes, tools for candidate tracking, and analytics for improving hiring
efficiency. For job seekers, they provide easy access to thousands of job
listings, often across sectors like IT, healthcare, finance, and more.

Growth and Scope

The industry has seen significant growth, driven by increasing internet
penetration, mobile usage, and the need for more efficient hiring processes.
With more companies expanding globally and seeking specialized talent,
platforms like Naukri.com operate not only in India but also in international
markets, including the Middle East. These services help companies reduce
hiring time and improve the quality of hires through better matching
algorithms and AI-driven tools.

Challenges
Despite its growth, the industry faces challenges such as dealing with the
oversupply of unqualified candidates, maintaining up-to-date job listings,
and managing competition. In emerging markets, regulatory compliance
and the skills gap between job seekers and industry requirements pose
additional hurdles
In conclusion, the recruitment industry continues to evolve with technology
playing a central role in its transformation. As companies and job seekers
increasingly rely on online platforms for hiring, the scope of this industry
will likely expand, driven by innovations in AI, machine learning, and big
data analytics.

Introduction to Naukari.com

Name: Naukri.com
Establishment Year: 1997
Headquarters: Noida, Uttar Pradesh, India
Founder: Sanjeev Bikhchandani

Mission: To provide the most efficient platform for connecting job seekers and
recruiters, using cutting-edge technology to simplify the recruitment process
across diverse sectors.
Vision:
To be the top choice for recruitment and job-seeking needs in India and the
Middle East, continually enhancing its platform with innovative features and tools
Overview:
Naukri.com is India’s leading online job portal, providing job listings, resume
databases, and recruitment solutions for both companies and individuals. It
operates across multiple sectors and offers a wide array of recruitment tools,
such as resume access and response management systems. With over 60 million
registered users and nearly half a million job listings live at any time, it serves as a
crucial employment resource
Services:
• Resume Database Access: Recruiters can search through millions of
resumes.
• Job Postings: Companies can list job openings to attract talent.
• Response Management Tools: Streamlines the communication between
employers and candidates.
• Premium Job Seeker Services: Includes resume writing and increased job
visibility
Impact:
• Over 76,000 corporate clients served.

• Presence in 42 cities across India and offices in the Middle East.

• Enabled millions of job seekers to find employment across various industrie
Awards and Recognition:
• ET Iconic Brands of India Award (2020).
• Best Website of the Year for Career and Education (2014).
• CASBAA TV Advertising Awards for Best TVC India & South Asia (2007).
• Consumer Connect Campaign of the Year for its famous "Hari Sadu" ad
(2006

How Naukari.com works?

For Job Seekers:
1. Registration and Profile Creation: Job seekers first register on Naukri.com
by creating an account. They then build a detailed profile, including their
educational background, skills, experience, and desired job roles.
 2. Job Search: Users can search for jobs using filters such as location, industry,
salary, and experience level. The platform provides access to thousands of
job listings across various sectors like IT, finance, healthcare, and more.
3. Resume Submission: Once the profile is complete, job seekers can apply for
jobs directly through the platform. They can upload their resume, which is
stored in Naukri’s resume database and made available to employers.
4. Job Alerts and Recommendations: The platform offers personalized job
recommendations and alerts based on a user's profile and job search
activity. This feature helps job seekers stay informed about relevant
opportunities.
5. Premium Services: Naukri also offers paid services for job seekers,
including resume writing, profile enhancement, and improved visibility,
which increases the chances of being noticed by recruiters.
For Employers/Recruiters:
1. Account Creation: Companies or recruiters create accounts to post job
vacancies. They can choose different service packages depending on their
hiring needs.
2. Job Posting: Employers can post detailed job descriptions with
qualifications, required skills, and salary expectations to attract suitable
candidates. These listings are then visible to job seekers.
3. Resume Database Access: Naukri.com provides employers with access to
its vast resume database, allowing them to search for candidates based on
specific criteria such as skills, experience, and location.
4. Screening and Shortlisting: Employers can use various tools provided by
Naukri to screen and shortlist candidates for interviews. The platform offers
response management systems that simplify communication and tracking of
applicants.
5. Hiring Analytics: Naukri.com provides insights and analytics for recruiters
to track the performance of their job listings, helping them understand
which postings are attracting more candidates and optimize their hiring
strategies accordingly.

Whether Naukari.com earns profit or is currently in

loss?
Info Edge (India) Ltd., the parent company of Naukri.com, has made a notable
financial recovery in FY24. Here are the detailed financials:
Projected market volume: By 2024, the matchmaking market in India is
expected to reach Rs.2,483 crore, with Shadi.com likely to contribute to this
growth.

1)Revenue Growth: Info Edge recorded total revenue of ₹2,950 crore in FY24, up
7.7% from FY23, primarily driven by its core businesses, including Naukri.com.
Naukri.com alone contributed a major portion of the company’s revenue. The
recruitment vertical saw a 4.5% growth in Q4 FY24, generating ₹480.5 crore.

2)Turnaround from Loss to Profit: Info Edge transitioned from a net loss of
₹107 crore in FY23 to a net profit of ₹575 crore in FY24. This significant shift was
primarily attributed to a reduction in advertising costs, operational efficiencies,
and improved performances in other segments like 99acres and Jeevansathi.
These segments helped reduce operational losses, from ₹198 crore in FY23 to ₹68
crore in FY24.
3)Expenditure Control: The company reduced its advertising expenses by over
16% in FY24, which contributed to the profitability. Employee-related expenses
accounted for 61% of the company's overall expenditure, but these costs only
grew marginally by 2.83%, helping to keep operational costs under control.

4)Exceptional Gains and Investments: Info Edge also benefited from non-
operating income, which included earnings from investments. In FY24, the
company recorded gains of ₹110 crore due to the reduction in the carrying value
of investments, compared to losses in FY23.
5) Segment Performance: While Naukri.com remains the dominant contributor
(74.1% of total revenue), other platforms also performed well:
• 99acres (real estate): This vertical grew by 23.6%, reaching ₹351 crore in
FY24.
• Jeevansathi and Shiksha: These platforms contributed ₹305 crore to total
revenue
6) Cash Flow: Info Edge generated significant cash from operations, growing
13.2% year-over-year, reaching a cash balance of ₹4,191 crore as of March 31,
2024
 Conclusion
Naukri.com, India’s leading job portal, has successfully transformed the
recruitment landscape by offering a comprehensive range of services for job
seekers and employers. Leveraging AI and analytics, it streamlines hiring,
providing tools like resume databases, job postings, and response management.
The platform significantly contributes to its parent company, Info Edge, which saw
a remarkable financial recovery in FY24, transitioning from a ₹107 crore loss to a
₹575 crore profit. Despite industry challenges like oversupply of candidates,
Naukri.com continues to thrive by driving innovation, making it a dominant player
in the evolving recruitment industry.

Current Performance of .com According to BCG Matrix:

The current performance of Naukri.com within the BCG Matrix can be analyzed
as follows:
1. Star: Naukri.com can be placed in the Star quadrant of the BCG Matrix. This
is due to its dominant position in the high-growth online recruitment
market, especially in India and the Middle East. As a leading player with a
vast user base and cutting-edge technology, it holds a significant market
share.
2. Market Leadership: Naukri.com strong brand reputation and its
continuous adoption of advanced technologies like AI-driven recruitment
solutions have helped it maintain high growth and a competitive edge.
3. Growth Potential: The online job market is growing rapidly, driven by
digital transformation, increasing internet penetration, and a growing
demand for efficient hiring solutions. Naukri.com is well-positioned to
capture this growth.
4. Revenue Growth: Naukri.com contributes a substantial portion to its parent
company, Info Edge, which saw significant revenue growth in FY24. This
strong performance further reinforces its position as a Star.