Thread by @Avnishah1008

How does #InfoEdge work?
(Views are personal)

I think it works Like a PE fund.

1. It has a cash-cow company– Naukri and IIMJobs which forms over 70% of their revenues and generates positive EBITDA of around 55%. Naukri has 70% market share including global players like Linkedin

2. There are 3 more companies 99Acres, JeevanSaathi and Shiksha. However, none of these are profit making, currently.

3. It then uses the profits to invest into various other companies like Zomato, PolicyBazaar, Happily unmarried etc. (investments form 52% of their total assets)

Neither are the revenues reflected in its financials nor do they take an active participation in managing the business.
Zomato– A name that is common for all and not only known to the youth but to the elders as well. They currently hold 22.71% stake (have been reducing its stake)

and its stake is valued at approx. Rs.5000 crs (Investment made by Infoedge was at Rs. 152 crs)

PolicyBazaar–Reports suggest that SoftBank too has invested in this company. They currently hold 15.85% stake (invested at Rs.576 crs) and their stake is valued at approx. Rs.1800 crs

What makes Infoedge unique and attractive is the fact that one single good investment can reap humungous profits over the years. In this case, example being Zomato and PolicyBazaar.

Currently, as per the management, only 10% of their investments usually fails.
Total BV of current investments – Rs.1167 crs; Total write off – Rs.222 crs