The need for an association of Internet companies in India was felt in early 2000.

India's early internet pioneers such as Ajit Balakrishnan of and Rajesh Jain established successful companies but did not build an ecosystem.

[citation needed] In 2002, baazee.com's Avnish Bajaj and Mouthshut.com's Faisal Farooqui exchanged conversations over email to establish an informal association of CEOs in the Internet space.

[citation needed] Its mandate is to expand and enhance the online and mobile value added services sectors.

[3][4] IAMAI also put forward the problems and requirements of the businesses to the consumers, shareholders, investors and the government of India.