Info Edge and Temasek may invest in ₹2,800 cr scheme
NEW DELHI: Internet firm Info Edge, which owns several online platforms such as Naukri and Jeevansathi, plans to co-invest with global investment firm Temasek in three schemes that will have a total corpus of $325 million (about ₹2,800 crore) for funding startups, according to the company’s founder and executive vice-chairman, Sanjeev Bikhchandani.
In a letter to shareholders, Bikhchandani said that since 2007 the company has invested approximately $250 million in the first three phases in various startups, including Zomato and Policybazaar, which have grown to become listed entities.
The fourth phase of the Info Edge early-stage investing journey began in 2019 when it decided to set up a Venture Capital Fund, Info Edge Venture Fund (IEVF).
The first scheme of IEVF, IE Venture Fund I (IEVF-I), was capitalized with ₹750 crore with 50% of this being invested by Info Edge and 50% by Temasek, the letter said. It has invested in 28 startups in the first and second rounds of their fundraise, picking up a large majority stake in them, according to the letter.
“To carry on our early-stage investing activity which we believe will continue to create value for our shareholders, we are planning to invest in three new schemes in partnership with Temasek,” Bikhchandani said.
“The total size of all the three proposed funds/schemes is $325 million with Temasek committing 50% and Info Edge seeking to commit 50%,” he said.
Among these, IE Venture Fund Follow-on I with a corpus of $100 million will invest in the emerging winners from IEVF-I.
“This is intended to consolidate our position in the best companies of IEVF-I. It is precisely this strategy of following on into the winners that delivered a large part of the returns we have earned in Policybazaar and Zomato,” Bikhchandani said.
Another scheme, IE Venture Investment Fund II, which has a total corpus of $150 million, will continue to invest in new startups as per the strategy that IEVF-1 adopted.
The third scheme, Capital 2B Fund 1, with a total corpus of $75 million will focus on investments in deep technology and patents, said the Info Edge founder.