SUMMARY
SIHL will use the capital to explore other investment opportunities including contribution towards AIFs managed by Info Edge-owned Smartweb Internet Services
The INR 300 cr investment would be in the form of a ‘cash consideration’ and would be completed immediately
SIHL, a wholly owned subsidiary of Info Edge, is a holding and investment company
Noida-based online classifieds company Info Edge on Saturday (August 13) said it would invest INR 300 Cr in its wholly owned subsidiary Startup Investments (Holding) Limited (SIHL).
SIHL will use the capital to explore other investment opportunities including contribution towards alternative investment funds (AIFs) managed by Info Edge-owned Smartweb Internet Services.
Smartweb Internet Services is a wholly owned subsidiary of Info Edge and is engaged in the business of providing all kinds of internet services and to act as investment advisor, financial consultant, management consultant, investment manager and/or sponsor of alternative investment fund (s). In July, Info Edge announced an investment of INR 15 Cr in Smartweb.
In its regulatory filing on Saturday, Info Edge said, “The company has agreed to acquire 30,000,000-0.0001% compulsorily convertible debentures (CCDs) having face value of Rs. 100/- each, convertible within a period not exceeding 10 years, at any time from the date of allotment on agreed terms and conditions.”
Info Edge already holds 100% stake in SIHL. According to the filing, the transaction will be executed at an arm’s length basis.
The Noida-based company, which operates recruitment platform Naukri.com, matrimony portal Jeevansathi.com, among others, said that the INR 300 Cr investment would be in the form of a ‘cash consideration’ and would be completed immediately.
Incorporated in 2015, SIHL is a holding and investment company. It reported nil turn over in the last three financial years – FY20, FY21 and FY22.
The announcement comes a day after Info Edge founder Sanjeev Bikhchandani said that the company is not in a hurry to sell its stake in Zomato and Policybazaar. Bikhchandani further added that there is a possibility that proceeds from the sale of stake in Zomato and Policybazaar might lead to ‘sub-optimal’ investments.
Info Edge owns 15.3% stake in foodtech giant Zomato and 13.3% stake in fintech player Policybazaar.
On Friday (August 12), Info Edge reported a 85% year-on-year (YoY) growth in consolidated net profit to INR 292.4 Cr for the quarter ending June 2022. Revenue from operations also surged 66% on a yearly basis to INR 547.2 Cr in the first quarter of financial year 2022-23.
