Info Edge soars after investment in Qyuki Digital Media

Info Edge (India) jumped 8.17% to Rs 2889.80 after the company's IE Venture Fund I entered into an agreement to invest about Rs 25.20 crore ($3.5 million) in Qyuki Digital Media.

The fund will invest about Rs 180 million equivalent to $2.5 million for subscribing to compulsory convertible preference shares (CCPS) having a face value of Rs 10 and about Rs 7.2 crore ($1 million) for subscribing compulsory convertible cumulative participating debentures having face value of Rs 1,000 each.

The said investment would help IE Venture Fund I to support and grow Qyuki's business in India.

IE Venture Fund I has agreed to acquire 916,356 CCPS of Qyuki. The aggregate shareholding of IE Venture Fund I, on a fully converted & diluted basis, pursuant to investment in such CCPS, would be 5.36%.

The conversion of aforesaid CCD is subject to certain terms & conditions including occurrence of some contingent events.

The actual shareholding of the company, on a fully converted & diluted basis, upon conversion of said CCDs will accordingly go up depending upon the agreed valuation for the next round of fund raise.

Qyuki which was incorporated on 11 June 2010 is a data-driven new media company which discovers & invests in india's most influential KOLs (Key Opinion Leaders) to help them rapidly grow their audience, create content and launch scalable D2C brands.

Last month, Info Edge (India) said that it has set up an Alternative Investment Fund named Info Edge Venture Fund ("IEVF") to invest in tech and tech-enabled entities that provide technology to create market and distribute innovative products and services that benefit consumers at large. Further, the company has entered into a contribution agreement to invest about Rs 100 crore in IE Venture Fund I, a scheme of aforesaid IEVF.

Info Edge (India) provides information technology services. The firm is involved in online classifieds business. Its segments include recruitment solutions, 99acres, online restaurant discovery and others. The others segment includes Jeevansathi and Shiksha services.

Info Edge will announce its Q3 2019 earnings on 12 February 2020.

On a consolidated basis, Info Edge (India) reported net loss of Rs 110.84 crore in Q2 September 2019 compared with net loss of Rs 72.03 crore in Q2 September 2018. Net sales rose 17.7% to Rs 329.54 crore in Q2 September 2019 over Q2 September 2018.

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