Infoedge has invested a total of Rs2.8 bn, in nine Internet start-ups since listing in 2007. Of these, detailed financials for two companies, namely Zomato and Meritnation. Management views these as high risk-high return investments. It believes the benefits derived from even one success story could completely outweigh the losses on others. Further, it believes these are necessary to keep attracting people with new ideas and to stay ahead of the competition.
The largest investee companies, namely Zomato and Meritnation, appear well-funded for now. Both of these are tiny compared to international comparable. They are seeing strong traction and have strong potential for growth.
The Following Table Shows Infodedge’s Rs 2.8Bn Investment Break up in 9 Internet Companies
Investor reactions on the aspect of investee companies have been mixed. While some agree with management, the rest believe management should remain focused on its core business. We tend to agree with the latter. What say ?