Information Edge Will Pump in INR 300 Cr in SIHL Subsidiary To Study Investment Opportunities

SIHL will utilize the capital to investigate other investment possibilities, including contributing to AIFs operated by Info Edge’s Smartweb Internet Services

The INR 300 crore investment would take an form called a “cash consideration’ that would be completed within a few hours.

SIHL is a wholly owned affiliate of Info Edge is a holding company and an investment company.

Noida-based classifieds online company Info Edge, on the 13th of August (August 13) announced that it will invest 300 crore in its wholly-owned company subsidiary Startup Investments (Holding) Limited (SIHL).

SIHL will use the funds to investigate different investment options, including contributions to other investment options (AIFs) operated by Info Edge’s Smartweb Internet Services.

Smartweb Internet Services is a 100% own subsidiary company of Info Edge. It is involved in providing various internet-related services as well as acting as an the investment adviser, financial expert and management consultant, as well as investor manager, and/or sponsor of alternative investment funds (s). In July Info Edge had announced an investment amount of INR 15 crore in Smartweb.

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In the regulator’s announcement this Saturday morning, Info Edge announced, “The company has agreed to purchase 30,000,000-0.0001 percent convertible debentures (CCDs) that have a the face value of Rs. 100per cent each, and convertible over 10 years anytime after at the time of the allocation based on the terms and conditions agreed upon.”

The Noida-based firm, which runs the recruitment platform matrimony site and, among others it said it was announcing that INR 300 crore investment would be made in the form of cash consideration and would be executed in a matter of hours.

Since its incorporation in 2015, SIHL is a holding and investment company. The company reported no turnover during the three most recent fiscal years namely FY20, FY21 , and FY22.

The announcement comes just a few days following Info Edge founder Sanjeev Bikhchandani declared that the company was currently not in any rush to dispose of its shares of Zomato or Policybazaar. Bikhchandani also said that it is possible that the proceeds earned from selling the stakes of Zomato and Policybazaar could lead to sub-optimal investment decisions.

Info Edge holds a 15.3 percent stake in the foodtech major Zomato and 13.3 percent stake in fintech firm Policybazaar.

The previous Thursday (August 12), Info Edge announced an 85% year-on-year (YoY) growth in its consolidated net profits at INR 292.4 Cr for the period ending June 2022. The revenue from operations also jumped 66% on a year-to-year base to 547.2 Cr for the initial quarter of the financial year 2022-23.

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