The company will invest in the legal tech startup in two equal tranches over the next 12 months
Info Edge’s aggregate shareholding in the startup would be 27.98% after the second tranche of investment
Founded by Karan Kalia, Rohit Shukla and Himanshu Puri in 2017, LegitQuest offers generative AI solutions to lawyers
Internet company Info Edge
informed the bourses that it plans to invest INR 4 Cr ($474K) in its portfolio company LegitQuest via its wholly owned subsidiary Startup Investments (Holdings) Ltd.
The investment in the legal tech startup will be made in two tranches by subscribing to convertible notes. The first tranche of INR 2 Cr would be made within 30 days and the rest will be invested within a year, subject to “certain conditions”.
While the startup will be securing additional investment from other investors, too, Info Edge’s aggregate shareholding in the startup would be 27.98% after the second tranche of investment. However, this will depend on LegitQuest’s next round of funding and other clauses.
Founded by Karan Kalia, Rohit Shukla and Himanshu Puri in 2017, LegitQuest offers a generative legal AI assistant that provides real-time answers, drafts documents, reviews contracts and case laws to lawyers.
The startup claims to have a user base of over 3 Lakh individuals and more than 1,000 B2B clients. LegitQuest’s turnover for the fiscal 2023-24 (FY24) stood at INR 5.85 Cr, up 163% from the INR 2.22 Cr it made in FY23. Further, it also reported a profit after tax of INR 38 Lakh in FY24.
Notably, Info Edge first invested in the startup in 2021, when it secured INR 5 Cr in its Series A funding round. Waterbridge Ventures also participated in the round.
The investment aligns with the company’s increasing focus on investing in GenAI-based internet companies. Last month, the online classified company announced plans to invest INR 30 Cr in its investment arm Redstart. With this investment, Info Edge plans to explore further investment opportunities in internet companies.
On the financial front, Info Edge’s profits declined significantly in the second quarter of the ongoing fiscal year. In Q2 FY25, the company reported a 64.6% year-on-year decline in its net profit to INR 84.73 Cr from NR 239.74 Cr in the same quarter last year. However, its operating revenue rose by 3.5% YoY to INR 700.82 Cr from the INR 625.84 Cr it reported in Q2 FY24.
Shares of Info Edge ended Monday’s trading session 3.77% higher at INR 7,959.35 on the BSE.
