Info Edge and its startup bets! Massive growth from Rs 4,900 cr to Rs 41,300 cr; early investments in Zomato, Policybazaar drive surge – Markets

Info Edge and its startup bets! Massive growth from Rs 4,900 cr to Rs 41,300 cr; early investments in Zomato, Policybazaar drive surge - Markets


Info Edge, the parent company of Naukri, has emerged as one of India’s most successful early-stage investors, with its startup portfolio now valued at Rs 41,300 crore, more than eight times the Rs 4,900 crore it has deployed across 135 companies over the years.

The company shared a detailed update on its investment performance, highlighting an overall return multiple of 8.4 times and a gross internal rate of return (IRR) of 33 per cent. Notably, nearly three-fourths of the capital invested, around Rs 3,600 crore, has come from Info Edge’s own balance sheet, underscoring its unique strategy of funding startups without relying heavily on external investors.

Created with AI. Errors are possible
Info Edge’s venture journey dates back to 2008, with early bets on companies such as PB Fintech (Policybazaar) and Zomato, now among the biggest value drivers in its portfolio. These consumer internet investments have delivered outsized gains, with the segment alone accounting for investments of Rs 2,755 crore across 45 companies and a current value of Rs 37,214 crore, translating to a 13.5 times return.

The company has also stepped up its focus on emerging technologies. Since 2020, it has invested Rs 1,003 crore in 54 AI and deeptech startups. The AI portfolio, comprising 28 companies, has generated a 2.1 times return with a gross IRR of 31 per cent, while the deeptech segment, still in a relatively early phase, has delivered a 1.2 times return. These investments span areas such as enterprise and consumer AI, robotics, semiconductors, spacetech, electric vehicles, and advanced manufacturing.

Info Edge’s model stands apart in the venture capital landscape. The company leverages steady cash flows from its core recruitment business, Naukri, to fund startup investments. This reduces the need to raise external capital and allows its investment team to focus entirely on identifying and nurturing high-potential ventures.

Management has reiterated that this structure gives it a distinct advantage, enabling a long-term investment approach without the pressure of fundraising cycles.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *