Noida-based Info Edge (India) Ltd, the parent company of online job listing platform Naukri, on Wednesday (June 3) announced that it has proposed to set up INR 750 Cr ($100 Mn) fund. The firm said that it had floated an AIF Class II fund in January 2020 to fund investments unrelated to the core operating entity.
The company said that Info Edge along with its wholly-owned subsidiaries in their capacity as LP committed INR 350 Cr and has already disbursed INR 150 Cr from that till now. The company is also in talks to raise $50 Mn from foreign LPs and has a pipeline of INR 85 Cr in non-binding signed term sheets.
Its investments from the fund include Dotpe Pvt Ltd (INR 10.4 Cr), Qyuki Digital Media Pvt Ltd (INR 25.2 Cr), Intellihealth Solutions Pvt Ltd (INR. 3.7 Cr), Fanbuff Esports India Pvt Ltd (INR 3.5 Cr).
Info Edge had announced in January that it has launched an INR 100 Cr IE Venture Fund. The alternative investment fund will invest in tech and tech-enabled startups that create, market and distribute innovative products and services that benefit consumers at large, it said.
Some of the notable startups in which Info Edge has invested in the past include food delivery unicorn Zomato, edtech platform Adda247 and digital ledger platform Khatabook.
In respect of Covid-19 impact, Info Edge said that it believes there would be more opportunities to invest in certain strategic areas of its core operating business and other areas of expansion.
“This could include M&A activities and strategic stakes in certain areas of interest. We see growth opportunities through investments in technology-oriented and innovation-oriented startups,” Info Edge said.
Info Edge also said, “In a challenging business environment due to the global pandemic, we believe in conserving our resources, accordingly we have restrained our discretionary spends and at the same time we are preserving the long-term value of assets. This includes key tangible and intangible assets.”
DataLabs by Inc42 in its Annual Tech Startup Funding Report noted that in 2019, Indian startups raised $12.7 Bn — 15% higher than 2018 — across 766 deals. However, in 2020 with the impact of Covid-19 pandemic, the industry and overall startup ecosystem is expected to face a hit due to financial stress.