Info Edge soars on launching Rs 100 Cr VC fund to invest in tech firms

Info Edge (India) jumped 6.1% to Rs 2742.7 after the company set up its maiden venture capital fund to invest intech startups.

Info Edge (India) in an exchange filing after market hours on Thursday said that it has set up an Alternative Investment Fund named Info Edge Venture Fund ("IEVF") which is sponsored through Smartweb Internet Services, its wholly owned subsidiary.

The fund has been set up under the SEBI Alternative Investment Funds Regulations 2012.

The objective of the fund is 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.

Earlier this week, Zomato signed a definitive agreement to acquire Uber's food delivery business in India ("Uber") in an all-stock transaction, which gives Uber 9.99% ownership in Zomato. Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective 21 January.

Upon closing of said acquisition, Info Edge (India)'s shareholding in Zomato shall stand reduced to about 22.71% on fully converted & diluted basis.

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.

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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