**Title:** Info Edge Reduces Startup Investments Amid Market Corrections
**Meta Description:** Info Edge has scaled back its startup investments, with fewer deals and declining cheque sizes over the past two fiscal years.
**URL Slug:** info-edge-startup-investments-decline
**Headline:** Info Edge Cuts Back on Startup Investments as Market Stabilizes
In recent years, consumer internet firm Info Edge has significantly reduced its investment activity, both in terms of volume and cheque sizes. Data indicates that the company, known for its flagship platform Naukri.com, made 18 startup investments in FY24 and 10 in FY25, a stark contrast to the 21 investments it made in FY23. Notably, this analysis excludes any investments made in the calendar year 2025.
Sanjeev Bikhchandani, founder and executive vice chairperson of Info Edge, emphasized the importance of risk evaluation in early-stage investments in a letter to shareholders. He noted, “Given that the natural predisposition of an early-stage investment is to go nowhere as opposed to become a multi-bagger, it is even more incumbent upon us to evaluate risks and diversify or mitigate them wherever possible.” He explained that initial investments in early-stage companies are typically modest, with larger investments reserved for companies that demonstrate progress and reduced risk.
Despite its historical success with investments in startups like PBFintech and Zomato, Info Edge has also experienced a decline in cheque sizes. In FY25, the average cheque size for investments was ₹13.96 crore, a significant drop from ₹86.84 crore in FY20. It is important to note that follow-on investments in certain companies may have inflated the sizes of earlier investments.
After a challenging two years marked by corrections in startup valuations and operational challenges, Info Edge reports that its investment portfolio is stabilizing. The company has invested in a total of 111 companies over the years, excluding those in sectors where it operates. Of these, 76 companies have institutional co-investors or follow-on investors, and several are beginning to show promise based on their growth, profitability, and market share.
Since beginning its investment journey in early-stage technology startups in 2007, Info Edge’s investing activities are believed to contribute approximately 30-40% of the company’s overall value, second only to Naukri.com. Bikhchandani highlighted the success of its investments in Zomato and Policybazaar, which together boast a market capitalization exceeding ₹2.5 trillion, with Info Edge’s shareholding valued at over ₹31,500 crore. The company has invested ₹483.78 crore in Zomato and ₹591.4 crore in Policybazaar.
From 2012 to 2015, Info Edge primarily focused on doubling down on existing investments, only venturing into new investments from 2016 to 2019 in companies like Adda247 and Shipsy. In 2019, the firm established the Info Edge Venture Fund (IEVF), a Sebi-registered AIF vehicle, to further its investment strategy.
As the market continues to evolve, Info Edge’s cautious approach to investments reflects a broader trend in the startup ecosystem, where companies are increasingly prioritizing stability and risk management.
**FAQ:**
**Q: Why has Info Edge reduced its investment volume in startups?**
A: Info Edge has scaled back its investments due to market corrections and the need to evaluate risks more carefully, focusing on stability and potential for growth in its portfolio.
