Info Edge launches Rs 100 Cr VC fund to back tech startups

Info Edge, one of the most active investors among early-stage startups and widely known for backing Zomato and PolicyBazaar which eventually became Unicorn, has launched its maiden venture capital fund to back tech startups in India.

Dubbed as Info Edge Venture Fund (IEVF), the new entity is a SEBI-registered Category-II alternative investment fund to invest in tech and tech-enabled entities that can create, market and distribute innovative products and services that benefit consumers at large.

In a regulatory filing with the NSE, Info Edge also revealed that the company had entered into a “contribution agreement” to invest about Rs 100 crore into IEVF.

According to sources close to the development, the fund size may increase and likely to get some more investors on board. However, Info Edge hasn’t revealed any further details on the fund.

With more than 50 startups across B2B and B2C segment already in its portfolio, Info Edge will further accelerate its investment cycle in the Indian startups' ecosystem.

Going forward, it would be interesting to watch its range of interest and the companies it selects to deploy the fund.

Only this month, Info Edge’s three portfolio companies made the headlines. First, when It sold its entire stake in edtech startup Meritnation to Aakash Group, then when Zomato acquired Uber Eats' India business, and again when PolicyBazaar witnessed a secondary transaction worth $25 million.

Before the deal with Aakash, Info Edge had a 66% stake in Meritnation and it holds 25% in Zomato and nearly 13% in PolicyBazaar.

A brainchild of Sanjeev Bikhchandani, Info Edge runs leading internet businesses Naukri.com, Jeevansathi.com, 99acres.com and Shiksha.com. The company has over 70 offices in 47 cities in India and overseas offices in Dubai, Riyadh, Abu Dhabi and Bahrain catering to the Middle East market.

In FY19, Info Edge generated net revenue from operations amounting to Rs 1,150.9 crore with a total expenditure of Rs 861.4 crore. As a result, the firm has generated a net profit of Rs 592.2 crore, as per the consolidated annual financial statement of the company.