Info Edge , a leading Indian internet company, has announced a significant business move involving its subsidiary, Shopkirana E Trading. The company has agreed to sell Shopkirana to HiveLoop E Commerce, a subsidiary of Trustroot Internet Private Limited (TIPL) - Udaan, for a consideration of $23 million (approximately ₹198 crore).

Transaction Details

According to the company's latest disclosure to the stock exchanges, the deal involves the transfer of Info Edge's entire stake in Shopkirana E Trading Private Limited. The stake, held through Startup Investments (Holding) Limited (SIHL), a wholly-owned subsidiary of Info Edge, consists of 60,673 shares, representing 26.14% ownership on a fully converted and diluted basis.

Terms of the Agreement

In exchange for the Shopkirana stake, HiveLoop E Commerce Private Limited (HEPL) will issue and allot to SIHL:

• 168,70,568 shares of HEPL, amounting to about 0.91% ownership on a fully converted and diluted basis
• The economic rights of these HEPL shares will be linked to 73,561 reference shares, representing a notional reference shareholding at the TIPL level
• The reference shares are valued at $314.39 per TIPL share, totaling approximately $23.13 million

Impact on Info Edge's Portfolio

Post-transaction, Shopkirana will cease to be an associate company of SIHL. Instead, SIHL will hold about:

• 0.91% stake in HEPL on a fully converted and diluted basis
• A notional reference shareholding of approximately 1.48% at the TIPL level

Timeline and Conditions

The agreement for the transfer is expected to be entered into within one week of the board's approval, which was given on July 18, 2025. The completion of the sale is subject to various conditions precedent and is anticipated to conclude by October 31, 2025, or a mutually agreed-upon extended date.

Financial Implications

Based on unaudited figures as of March 31, 2025, Shopkirana contributed:

Strategic Move

This divestment appears to be a strategic decision by Info Edge to realign its investment portfolio. By selling its stake in Shopkirana, the company is set to gain exposure to the broader e-commerce ecosystem through its new stake in HEPL and the associated interest in TIPL-Udaan.

The transaction underscores Info Edge's dynamic approach to managing its investments and its willingness to capitalize on opportunities that arise in the rapidly evolving Indian internet and e-commerce landscape.

As the deal progresses towards completion, market observers will be keen to see how Info Edge utilizes the proceeds and leverages its new strategic position in the e-commerce sector.

Info Edge (India) Limited, a prominent player in the Indian tech industry, has announced a significant move to bolster its startup investment portfolio. The company has decided to invest approximately Rs 25 crore in its wholly-owned subsidiary, Startup Investments (Holding) Limited (SIHL).

Investment Details

The investment decision was made during a meeting of Info Edge's Committee of Executive Directors on July 15, 2025. The company plans to acquire 1,041,666 Compulsorily Convertible Debentures (CCDs) of SIHL at an issue price of Rs 240.00 each, including a premium of Rs 140.00 per CCD.

About Startup Investments (Holding) Limited

SIHL, incorporated on March 4, 2015, is primarily engaged in direct or indirect investments in tech companies and related activities, including investments in Alternative Investment Funds (AIFs). Despite showing no turnover in the past three financial years, SIHL reported a Profit After Tax (PAT) of Rs 0.86 crore for the financial year ending March 31, 2025.

Objectives of the Investment

Info Edge stated that this investment would help SIHL explore new investment opportunities, including contributions to AIFs and other general purposes. This move underscores the company's commitment to supporting and expanding its startup portfolio, potentially fostering innovation in the tech sector.

Transaction Details

Market Implications

This strategic investment by Info Edge demonstrates the company's continued focus on nurturing and developing its startup ecosystem. By channeling funds into SIHL, Info Edge is positioning itself to capitalize on emerging opportunities in the tech startup space, which could potentially drive long-term growth and value creation for the company.

As the Indian startup ecosystem continues to evolve, Info Edge's move to strengthen its investment arm could be seen as a proactive step to maintain its competitive edge in identifying and supporting promising tech ventures.

Investors and market observers will likely keep a close eye on how this investment translates into tangible returns and strategic advantages for Info Edge in the coming years.