Info Edge to invest INR 300 crore in its subsidiary SIHL to explore investment opportunities
- ByStartupStory | August 15, 2022
Noida-based online listings business Info Edge announced an investment of INR 300 crore in its wholly-owned subsidiary Startup Investments (Holding) Limited (SIHL). SIHL intends to use the assets to investigate other investment options, including contributions to alternative investment funds (AIFs) administered by Info Edge-owned Smartweb Internet Services.
Smartweb Internet Services is a completely owned subsidiary of Info Edge that provides various types of internet services as well as acting as an investment adviser, financial consultant, management consultant, investment manager, and/or alternative investment fund sponsor (s). Info Edge made an INR 15 Cr investment in Smartweb in July.
“The firm has committed to purchase 30,000,000-0.0001% compulsorily convertible debentures (CCDs) possessing face value of Rs. 100/- apiece, convertible within a period not exceeding 10 years, at any time from the date of allocation on agreed terms and conditions,” Info Edge said in a regulatory filing on Saturday. SIHL is already 100% owned by Info Edge. The deal will be carried out on an arm’s length basis, according to the document.
The Noida-based firm, which handles the job platform Naukri.com and the matrimonial web Jeevansathi.com, among other things, stated that the INR 300 Cr investment will be made in the form of a ‘cash consideration’ and would be done immediately. SIHL is a holding & investment business that was founded in 2015. It had no revenue in the previous three fiscal years, FY20, FY21, and FY22.
The announcement comes only one day after Info Edge founder Sanjeev Bikhchandani stated that the business had no plans to sell its stakes in Zomato and Policybazaar. Bikhchandani also stated that the money from the sale of stakes in Zomato & Policybazaar may result in sub-optimal investments.
Info Edge owns 15.3% of food tech behemoth Zomato and 13.3% of financial firm Policybazaar. Info Edge announced an 85% year-on-year (YoY) increase in consolidated net profit to INR 292.4 Cr for the quarter ended June 2022 on Friday (August 12). Revenue from operations increased 66% year on year to INR 547.2 Cr in the Q1 of the fiscal year 2022-23.
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