No Plans To Exit Portfolio Companies: Zomato-Backer Info Edge

Info Edge cofounder Sanjeev Bikhchandani said that the company is currently not looking to exit any of its portfolio companies. 

Info Edge counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech as well as unlisted edtech company Adda247 in its portfolio. His comments come at a time when the shares of listed companies in Info Edge’s kitty have surged on the bourses and have grown multifold in the past one year.

Speaking during the company’s post-earnings call, Bikhchandani said, “If we believe there’s substantial growth and consequent value creation left, we think it’s better for long-term value creation for our shareholders. We’ll probably stay. As of now, there is no plan to exit”.

Citing his “past experiences”, he said it is prudent to stay invested for a long time before “truly” getting the value of one’s bets. 

“Past experience and evidence tell us that in India, if you enter at an early stage, you need to be patient. When you look at Zomato, we entered in 2010, and with Policybazaar, we entered in 2008, and we are still there. The significant value has come in the last three or four years, which means that you need to stay invested for a long time before you truly get the value,” he reportedly added. 

He also said, “If something blows up, you will obviously exit earlier. If there is a great acquisition offer that comes along and if the founder wants to take it, you can’t really block that because you have to back the founder”.

As per Info Edge’s financial results for the quarter ended June 2024, the investment firm was sitting on gains to the tune of INR 2,189 Cr on its fair value of investment Zomato at the end of June 2024. 

Meanwhile, it was also sitting on gains worth INR 749.4 Cr on its investments in insurtech major Policybazaar’s parent PB Fintech at the end of the quarter under review. 

As per the BSE data, Info Edge overall owns 13% stake in Zomato worth INR 31,886 Cr. On the other hand, the investment major’s stake in PB Fintech is valued at north of INR 8,351 Cr. 

This comes at a time when the stocks of Zomato and PB Fintech have been on a rise. For context, the foodtech major’s shares have soared 183.84% in the past 12 months while the insurtech giant’s shares are up 82.9% on a year-to-date (YTD) basis. 

This has largely come on the back of back-to-back profitable quarters reported by the two companies and a healthy growth in their respective top lines. 

Earlier today, Info Edge announced its financial results for the quarter ended June 2024. The online classified company’s profit zoomed 75% year-on-year (YoY) to INR 258.85 Cr during the quarter, while revenue from operations grew 20% to INR 827.92 Cr. 

Shares of Info Edge closed 4.21% higher at INR 7,205.90 on the BSE on Friday (August 9).