Info Edge Invests ₹250 Cr in Deep Tech Fund, Sells Shopkirana Stake

Info Edge (India) Ltd. has approved key strategic deals to expand its investment portfolio and streamline holdings. The company will contribute up to ₹250 crore to A88 Fund I, a fund focused on early-stage deep tech companies.

Key Transactions Announced

Info Edge (India) Limited's Board of Directors, in a meeting on March 27, 2026, approved key strategic transactions aimed at expanding its investment portfolio and streamlining associate holdings. The company will contribute up to ₹250 crore to A88 Fund I, a fund focused on early-stage deep tech companies. This contribution will be made directly or through wholly owned subsidiaries, with Smartweb Internet Services Limited acting as sponsor and investment manager.

In a separate significant move, Info Edge is transferring its entire 26.14% stake in Shopkirana E Trading Private Limited, held through its subsidiary Startup Investments (Holding) Limited (SIHL), to Trustroot Internet Private Limited (TIPL). The consideration for this divestment is USD 32,970,499.20. Additionally, Info Edge's subsidiary will invest USD 1,724,169.60 in TIPL, acquiring preference shares and holding approximately 2.126% post-transaction.

Strategic Rationale

These deals show Info Edge's strategy to increase its focus on high-growth technology sectors. The commitment to A88 Fund I aligns with the company's broader strategy of backing innovative Indian entrepreneurial deep tech companies, a segment ready for significant future growth. The Shopkirana sale and TIPL investment signal a portfolio rebalancing, shifting strategic focus and associate company holdings. Shopkirana will no longer be an associate company of Info Edge following the transaction's completion.

Company Background

Info Edge (India) Ltd. has a strong history as both an operator of major internet platforms like Naukri.com and an active investor in the startup ecosystem. The company has previously made investments in companies like Zomato and Policybazaar, which are now major listed entities. Info Edge uses investment arms like Info Edge Ventures, Capital 2B, and Redstart Labs to support startups at all stages, from seed to growth, with a focus on tech-enabled and deep tech companies. In July 2025, Info Edge had agreed to transfer the Shopkirana stake to Hiveloop E-Commerce, a Trustroot Internet subsidiary. Info Edge also recently received shareholder approval in May 2025 to invest up to ₹1,000 crore in a new venture fund.

Key Changes

• Info Edge expands its venture capital portfolio with a dedicated fund for deep tech investments.
• The company diversifies its investment strategy beyond traditional internet platforms into cutting-edge technology.
• Shopkirana E Trading Private Limited will cease to be an associate company of Info Edge.
• Trustroot Internet Private Limited (TIPL) becomes a new strategic holding for Info Edge's subsidiary.
• The company refines its associate company structure and investment focus.

Potential Risks

• Execution Risk: The transfer of Shopkirana shares to TIPL depends on meeting conditions and getting clearance from an authorized bank.
• Fund Contribution: Actual contributions to A88 Fund I will be made as needed over time, depending on investment opportunities, market conditions, and fund expenses, not as an immediate lump sum.

Industry Context

Info Edge stands out as a dominant player in online classifieds (Naukri, 99acres) and a major investor in India's digital economy. Unlike companies focused only on specific platforms, such as Zomato or Policybazaar (both former Info Edge investments), Info Edge plays a dual role. Other internet companies like MakeMyTrip or listed tech firms also allocate capital strategically. However, Info Edge's deep involvement, from operating its own platforms to nurturing startups at various stages, distinguishes it. Investing in a dedicated deep tech fund matches wider industry trends as specialized funds emerge for new, high-potential technologies.

Financial Metrics

• Shopkirana E Trading Private Limited reported revenue of ₹469.33 crore and a net worth of ₹22.56 crore as of March 31, 2025.
• Trustroot Internet Private Limited (TIPL) had a turnover of ₹4,561.4 crore but a net worth of (₹506) crore as of March 31, 2025.

Next Steps

• Confirmation of the completion of the Shopkirana stake transfer and the TIPL investment.
• Performance metrics and capital deployment activity within the A88 Fund I.
• Info Edge's ongoing strategy for its venture investment portfolio and its core online businesses.