Info Edge Gets Nod To Invest INR 30 Cr In Its Subsidiary Redstart Labs

Online classified company Info Edge’s committee of executive directors has approved investment of INR 30 Cr (around $3.5 Mn ) in its wholly-owned subsidiary Redstart Labs.

“This is to inform you that the company in its meeting of committee of executive directors held today i.e. on October 22, 2024 has agreed to invest an amount of INR 30 Cr in Redstart Labs (India) Limited, wholly-owned subsidiary of the company,” Info Edge said in an exchange filing.

As a part of this investment, Info Edge will acquire 30 Lakh compulsorily convertible debentures (“CCDs”) having face value of INR 100 each. 

The investment is slated to be completed within 30 days of the approval.

The fresh investment will be used to meet the capital requirements, explore further opportunities and finance other general purposes, the company said in the filing. 

Incorporated in 2020, Redstart is engaged in the business of direct or indirect investments in tech companies and providing all types of Internet services, development of software, consultancy, technical support for consumer companies, internet or SAAS providers, and any other services in the area of information technology and product development.

For the financial year ending March 2024, Redstart Labs recorded a net profit of INR 33.18 Cr and its net worth stands at INR 14.81 Cr.

Info Edge is an online classifieds company in India, known for its diverse portfolio that includes leading platforms like Naukri.com, 99acres.com, Jeevansathi.com and Shiksha.com. It counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech, and unlisted edtech company Adda247 in its portfolio. 

This development comes a month after Info Edge announced the completion of its 34.93% stake sale in Wishbook Infoservices Private Limited.

On the financial front, the company reported robust growth in its consolidated profits in the first quarter of the ongoing fiscal year (Q1  FY25). 

Its profit zoomed to INR 258.85 Cr, a 75% year-on-year (YoY) increase from the INR 147.4 Cr it made in Q1 FY24. On a sequential basis, the Sanjeev Bikchandani-led company’s profits increased by 195% from last quarter’s INR 87.96 Cr. 

In tandem with the profit increase, the company’s revenue from operations also grew 20% YoY and 2% QoQ to INR 827.92 Cr. 

Shares on Info Edge ended Tuesday’s session 3.6% lower at INR 7654.75 on the BSE.