99acres parent Info Edge approves Rs 75 crore investment in Smartweb and SIHL

Info Edge, the parent company of Naukri.com and 99acres.com, has approved fresh investments worth about Rs 75 crore in two of its wholly owned subsidiaries, Smartweb Internet Services Limited and Startup Investments (Holding) Limited.

The decision was taken at a meeting of the Committee of Executive Directors held on November 26.

The company said it will invest Rs 5 crore in Smartweb and about Rs 70 crore in SIHL. Both entities are already fully owned by Info Edge, so the transactions fall under related party category, although promoter groups have no interest in these investments. The company noted that both transactions are being carried out on an arm’s length basis.

Smartweb, incorporated in 2015, works in internet services and also functions as an investment advisor, financial consultant and manager or sponsor of alternative investment funds.

As of FY25, it recorded a turnover of Rs 41.39 crore, a net profit of Rs 5.03 crore and a net worth of Rs 60.91 crore. Info Edge will acquire five lakh Compulsorily Convertible Debentures with a face value of Rs 100 each. After the transaction, Smartweb will continue to remain a wholly owned subsidiary.

The company said the infusion will help Smartweb meet its fund requirements and strengthen its financial position. The investment is expected to be completed within 30 days.

The second investment, in SIHL, is aimed at supporting its plans to explore opportunities in the tech and startup ecosystem. SIHL focuses on direct and indirect investments in technology companies and also contributes to AIFs. It reported a net profit of Rs 0.86 crore and a negative net worth of Rs 209.50 crore for FY25. It has had no turnover in the past three financial years.

Info Edge will acquire 29,16,666 CCDs at an issue price of Rs 240 each, which includes a premium of Rs 140 per CCD. Following this transaction, SIHL will also remain a wholly owned subsidiary. The investment does not require any regulatory approvals and is expected to be completed within 30 days.

In recent years, SIHL has backed companies such as Ustraa, Gramophone, Rusk Media and ShoeKonnect.

Info Edge has also been increasing the capital pool for its newer investment vehicles. Earlier this month, it cleared a Rs 100 crore infusion into Redstart Labs, its deeptech and SaaS focused subsidiary. Redstart has invested in companies such as Unbox Robotics, BrainSight AI, Skylark Drones, ePlaneCo and CynLr.

Info Edge has also announced plans to launch a Rs 1,000 crore venture fund focused on AI, SaaS and deeptech through Redstart and other entities. In August 2022, it had made a Rs 300 crore investment into SIHL as part of its long term capital programme for startups.