Info Edge is all set to raise $100 million for a Venture Capital fund. This funding will see Info Edge and its completely owned subsidiary commit Rs 350 crore while the rest of the amount is expected to be raised from outside investors or Limited Partners (LP). With the latest development, Info Edge will be competing against early stage funds like Blume Ventures, India Quotient and Stellaris Venture Partners, besides VC firms like Sequoia Capital and Accel India.
The firm supports the likes of unicorn companies like Zomato with 25% stakes and PolicyBazaar with 11% of shares. In the beginning of the year, Info Edge also got an Alternative Investment Fund (AIF) license under Category II, which it planned to invest Rs 100 crore in IE Venture Fund I initially. According to the latest filings, those plans have been scaled up.
Info Edge gave a statement saying, “We see growth opportunities through investments in technology oriented and innovation-oriented startups…we may also explore options to raise equity capital from external investors for our investment activities.”
This development comes at a crucial time when the industry is witnessing lesser investments due to the ongoing pandemic. The company also owns recruitment portal Naukri and estate classified platform 99 acres which has been affected by the Covid-19 crisis.
Info Edge has already spent Rs 150 crore out of which Rs 85 crore worth of investment is in term sheet stage. This makes it the most active early stage investors of the year. The four investments it has already made are in Fintech startup, DotPe, new media firm Qyuki, e-sports platform FanClash and Telemedicine firm Truemeds.
Even though the company’s revenue has come down in the month of April owing to the ongoing crisis, it still firmly believes that use of digital spaces will increase in coming future. They currently have zero debt and $200 million in hand as they look for more M&A opportunities.