February 7, 2025: In a strategic move to accelerate India’s tech startup ecosystem, Info Edge India, an online classifieds company in collaboration with Temasek, Singapore’s sovereign wealth fund, has announced the launch of a new Rs 2,000 crore ($230 million) venture fund. This major financial commitment aims to support and scale tech-driven startups in India, strengthening Info Edge’s position in the rapidly growing Indian venture capital space.
A Game-Changing Investment for India’s Startup Landscape
The newly established IE Venture Investment Fund III, with an initial Rs 1,000 crore ($115 million) contribution from the online classifieds company, will focus on fueling the growth of early-stage tech startups across various sectors including consumer internet, fintech, edtech, and software. The fund, which will primarily make investments in emerging companies, also sets aside a portion for follow-on investments in successful ventures as they scale.
This fund’s launch marks a significant milestone for Info Edge, which has already demonstrated its strong belief in the potential of India’s startup ecosystem. By partnering with Temasek, the online classifieds company is well-positioned to leverage its expertise and network to identify and support high-potential startups. The hybrid investment model employed by online classifieds company —where the company makes both direct investments from its balance sheet and larger, structured bets through dedicated funds—ensures a balanced approach to capital deployment, minimizing risk while targeting high returns.
Expanding Info Edge’s Vision for Growth
Info Edge’s foray into venture funding is not a new venture. The company had previously established Info Edge Ventures, a $100 million fund co-sponsored with Temasek in 2020. The success of its earlier investments, particularly its stake in Zomato, has solidified the online classifieds company reputation as one of the most successful investors in India’s startup space. By reinvesting its learnings into this new, larger fund, Info Edge is poised to continue its strategy of identifying high-growth companies that will shape India’s digital future.
The company’s past investments in Zomato, Policybazaar, ShopKirana, NoBroker, and Univariety, among others, have yielded significant returns. Info Edge’s initial investment in Zomato, for example, was a modest Rs 4.7 crore. However, as Zomato scaled, the online classifieds company stake grew, and the IPO exit in 2021 earned the company over Rs 3,000 crore, marking one of the most successful startup investments in India’s venture capital history.
Financial Strength and Portfolio Diversification
In addition to its venture fund activities, Info Edge has continued to strengthen its business model by diversifying into multiple sectors. With a diverse portfolio that spans recruitment services, real estate, matrimonial services, and education, the online classifieds company has seen consistent growth across its various business verticals. In its latest quarterly financial results, the company reported a 9.6% increase in total revenue, reaching Rs 675.7 crore. This growth was driven by strong contributions from emerging businesses such as 99acres (real estate), Jeevansathi (matrimonial services), and Shiksha (education).
While the recruitment segment via Naukri.com still represents a significant portion of the company’s revenue, these emerging verticals are gaining prominence. The 17.6% growth in 99acres, driven by India’s real estate recovery, and the 15.8% growth in Shiksha, fueled by increased student and institutional engagement, highlight the company’s ability to adapt and thrive in diverse sectors.
However, despite the positive performance from these emerging segments, Info Edge’s profitability took a slight hit during the quarter, with net profit declining by 14.7% year-on-year. The decline was largely due to higher operational expenses and a drop in gains from financial investments. Nonetheless, Info Edge remains a financially robust company with strong long-term growth prospects.
Looking Ahead: The Future of Tech Startups in India
The launch of IE Venture Investment Fund III underscores Info Edge’s long-term commitment to India’s thriving tech startup ecosystem. With a growing number of technology-driven businesses emerging across sectors, this new fund will be pivotal in nurturing the next generation of Indian entrepreneurs and innovators.
India’s tech startup scene continues to show immense promise, with opportunities across fintech, software, edtech, and more. By providing crucial funding and operational expertise to high-potential startups, Info Edge and Temasek are positioning themselves at the center of this growth, with the potential for substantial financial returns.
As Info Edge continues to make strategic investments and expand its footprint in the venture capital space, it is clear that the company’s hybrid approach—combining its core business operations with venture funding initiatives—will ensure its continued success and resilience in the dynamic Indian market.
A Bright Future for India’s Tech Entrepreneurs
With a Rs 2,000 crore fund in place, Info Edge and Temasek are sending a clear message of confidence in India’s tech-driven future. This investment is set to empower startups across India to scale and innovate, helping the nation remain a global hub for entrepreneurship and technological advancement.
