Meritto Files Confidential DRHP, Info Edge To Reduce Stake To Below 25%

Info Edge will offload about 3.8 Cr shares of Meritto (formerly NoPaperForms) via the offer-for sale component (OFS) of the edtech SaaS company’s IPO.

In an exchange filing, Info Edge said its wholly owned subsidiary Startup Investments Holding Limited (SIHL) has approved the divestment via the OFS route. Following the public issues, SIHL’s stake in Meritto will reduce to below 25%.

Notably, Meritto pre-filed its DRHP with SEBI on November 6. According to its public announcement, the IPO will include a fresh issue as well as an OFS. Info Edge might look at “pre-IPO secondary sale or sale of equity shares prior to the filing of the red herring prospectus (RHP)”, the company said in the filing.

The company is reportedly looking to raise between INR 500 Cr to INR 600 Cr ($60 Mn to $70 Mn) at a valuation of around INR 2,000 Cr ($234 Mn). Earlier, it appointed IIFL Capital and SBI Capital as the investment bankers for the IPO.

On the financial front, Meritto posted a net profit of INR 1.9 Cr in FY25 as against a profit of INR 4 Lakh in FY24, led by a 31% YoY jump in operating revenue to INR 92.3 Cr.

Meritto’s performance improved on the back of more educational institutions adopting its SaaS-based CRM and enrolment tools. The company serves over 1,200 clients and is expanding to the UAE and Malaysia.

Notably, Info Edge first invested in Meritto through a $400K seed cheque, followed by $3.2 Mn in its Series A round in 2018. The IPO gives the listed internet major an opportunity to monetise a part of this long-held investment. 

Shares of Info Edge ended today’s trading session 0.22% lower at INR 1,342.65 on the BSE.