Recruitment Remains the core business segment and contributes major profits to InfoEdge India. The economy has picked up, which has helped accelerate top-line growth (now at ~20%). Top-line growth should accelerate further if economic growth improves. Growth beyond 20% will expand segmental margins (currently at 50%). What InfoEdge lacks is Innovation
Property segment is under pressure both due to challenges in the onground environment and rising competition. Info Edge spent US$6-7m to become the largest player in the segment but has raised US$125m six months back to create a "war chest" to defend market share (competition is now becoming irrational). It has expanded its operations team and improved its platform. The company believes that it is seeing good user traction
Good asset where it has a 50% stake. 85% of revenue currently comes from India and UAE (both are EBITDA positive). The company has spent the bulk of the US$60m raised a couple of months back on acquiring Urban Spoon. Zomato is entering new service areas - food delivery and restaurant booking. It is also likely to undertake two more rounds - 1) near term to replenish funds and 2) larger round for rolling out services in new geographies. The valuations in private space have gone up significantly so remains to be seen if it will be likely to retain its stake.
