Info Edge's Long-Term Investments Yield Blockbuster Returns
New Delhi, May 11 – Info Edge, the parent company of Naukri.com, has seen remarkable returns from its long-term investments in Indian startups, including Zomato and Policybazaar. According to the firm's FY25 annual letter to shareholders, its assets have yielded nearly ten times their initial value, with an estimated gross internal rate of return (IRR) of 36%.A Strategic Investment Journey
Sanjeev Bikhchandani, often dubbed India's Warren Buffett, leads Info Edge, which has invested Rs 3,959.16 crore across various platforms over the last fifteen years. These investments have grown significantly at a Fair Market Value (FMV) of Rs 36,855 crore.In his letter to shareholders, Bikhchandani highlighted that since 2007, Info Edge has achieved a 36% gross IRR across all its financial investments. This long-term commitment has positioned the firm as a significant player in the Indian startup ecosystem.
Key Investment Milestones
Info Edge has been an early investor in high-profile Indian companies, including Zomato and Policybazaar, two of its biggest successes. The firm invested Rs 483.78 crore in Zomato and Rs 591.40 crore in Policybazaar, with its shares in both companies exceeding Rs 31,500 crore. These companies have since reached a combined market capitalization of over Rs 2.5 lakh crore, cementing Info Edge's reputation as a savvy investor.The firm's diverse portfolio includes investments in brands such as Ustra (a men's grooming brand), Shopkirana (a B2B e-commerce platform), Adda247 (an edtech platform), and Zingbus (an inter-city bus travel platform). Info Edge has backed 111 companies, contributing to its diversified investment strategy.
Launch of Info Edge Venture Fund
In 2019, Info Edge took its investment approach further by launching a SEBI-registered AIF (Alternative Investment Fund) venture capital fund, Info Edge Venture Fund. With a total corpus of Rs 3,422.94 crore spread across three funds, Info Edge has committed Rs 1,613.75 crore to the initiative. Investing in early-stage deep tech companies through its wholly-owned subsidiary, Redstart Labs, has already significantly impacted this venture capital fund.Evolution of Info Edge's Investment Strategy
Info Edge's investment journey has evolved over four distinct phases. The first phase (2007-2012) saw the company invest early in Zomato and Policybazaar, setting the stage for future success. The second phase (2012-2015) was more cautious, as the firm waited for the winners from the previous phase to emerge.From 2016 to 2019, Info Edge began to scale up its investments with more certainty, with companies like Adda247 and Shipsy entering the portfolio. During this period, it became clear that Zomato and Policybazaar would become major successes. The fourth phase, starting in 2019, involved the launch of the Info Edge Venture Fund, which aims to nurture early-stage startups through three distinct funds.
Looking Ahead: Promising Future Prospects
While early-stage investing typically requires 7-8 years to see meaningful returns, Info Edge's portfolio companies already show promising signs. Companies like TrueMeds, Geniemode, and Attentive.ai are experiencing strong revenue growth and profitability, attracting follow-on investments from renowned investors such as Accel, Matrix, and Tiger Global.Additionally, Bluestone Jewellery and Lifestyle Pvt Ltd, the largest investment by Info Edge Capital, has secured follow-on investments from major players such as Prosus (Naspers group) and Peak XV. Bluestone has also filed its Draft Red Herring Prospectus with SEBI for an upcoming IPO, further solidifying Info Edge's strong position in the market.