Info Edge To Increase Stake In Pet Care Startup Sploot To 26.40%

SUMMARY

– Info Edge subsidiary Redstart Labs will acquire 1,051 Seed-2 Series compulsory convertible preference shares of Sploot

–Post the execution of the deal, Redstart would increase its shareholding in the startup to 26.40% from 21.96% previously on a fully converted and diluted basis

–Founded in 2019, Sploot is a pet care startup that helps pet parents book services such as dog walking and dog grooming

Info Edge’s subsidiary Redstart Labs is investing another INR 3 Cr in Sploot to increase its stake in the pet care startup to 26.40%.

In an exchange filing, the company said that Redstart Labs would acquire 1,051 Seed-2 Series compulsory convertible preference shares of Sploot.

“This is to inform you that Redstart Labs (India) Ltd. (“Redstart”), a wholly-owned subsidiary of the Company has agreed to invest an amount of about INR 3 Cr in Sploot Private Limited (“Sploot”) and consequently the company’s aggregate shareholding through Redstart would increase from 21.96% to 26.40% on a fully converted and diluted basis upon completion of the acquisition of shares,” the filing said.

The transaction is expected to be completed within 30 days from the approval of the board of Redstart.

Founded in 2019 by Arnav Sahni and Garima Kaushal, Sploot is a pet care startup that operates an app for pet health, behaviour and nutrition. It helps pet parents book services such as dog walking and dog grooming. It also sells pet food under its brand name.

As per the filing, Sploot has a net worth of INR 3.15 Cr. It posted a loss of INR 5.42 Cr in the financial year 2023-24 (FY24) on an operating revenue of INR 1.79 Cr.

Info Edge is among the most active investors in the Indian startup ecosystem. It counts the likes of Zomato and Policybazaar in its portfolio.

In October this year, Info Edge’s board approved an investment of INR 30 Cr (around $3.5 Mn ) in Redstart.

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.

Info Edge’s net profit declined 64.6% to INR 84.73 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 239.74 Cr in the same quarter last year. Revenue from operations increased 12% to INR 700.82 Cr during the quarter under review from INR 625.84 Cr in the year-ago period.