Top 5 Indian Platform Stocks Investing Heavily in Advertising to Drive Growth

In the world of platform businesses, growth is not just a goal—it’s the engine driving success. Unlike traditional businesses, platform companies thrive as they scale, benefiting from the network effect. As more participants join the platform, the stronger the network becomes, creating a cycle of growth and opportunity. To kickstart this cycle, many platform companies invest heavily in advertising and marketing, especially during their early stages.

Here are the top five platform stocks in India that are aggressively spending on advertising to accelerate their growth and market presence:

1. Matrimony.com
   Matrimony.com, the leading online matchmaking platform in India, has ramped up its advertising spend to maintain its market share amid fierce competition. Despite an 8% annual growth in sales and profits, the company continues to invest significantly in advertising—primarily through television. The company recognizes the need for such spending to sustain visibility and competitiveness.
2. PB Fintech (Policybazaar)
   PB Fintech, known for its insurance and lending platforms Policybazaar and Paisabazaar, is investing heavily in advertising, dedicating 26% of its revenues to marketing in FY24. This strategy aims to capture market share in India’s rapidly growing insurance and lending sectors. PB Fintech justifies its high advertising costs by the strong return on investment it garners, particularly in premium health and life insurance.
3. Le Travenues Technology (ixigo)
   As one of India’s top online travel agencies, ixigo has increased its advertising expenditure to 23% of revenue in FY24. With growing competition in the travel industry, the company is focused on building its brand and acquiring new users, particularly in the bus and flight ticket segments. ixigo’s strategy includes a mix of online and offline marketing channels.
4. Swiggy
   India’s leading food delivery platform, Swiggy, has invested 16% of its revenue into advertising and sales promotions. Despite operating in a competitive environment, Swiggy is focusing on expanding its user base and enhancing brand awareness. While Swiggy’s advertising spend remains high, the company expects a decrease in the percentage of revenue spent on advertising as brand awareness increases.
5. Easy Trip Planners (EaseMyTrip)
   EaseMyTrip, one of India’s prominent online travel agencies, adopts a lean approach to marketing. Despite spending comparatively less than its competitors—1% of gross booking revenues—the company’s strategic focus on performance marketing has helped it remain profitable while expanding its presence.

In conclusion, these platform businesses are investing heavily in advertising to drive growth and market dominance. While this presents a high-risk, high-reward opportunity for investors, the long-term viability of these companies depends on their ability to sustain growth and manage advertising expenditures efficiently. As the competition in these sectors intensifies, strategic investments in advertising will continue to play a key role in shaping their future success.