Big Money. Bigger Mystery. Who’s Behind This ₹100 Cr Tech Bet?

Info Edge (India) Ltd. is a diversified internet services company, best known for Naukri.com (jobs portal) and 99acres.com (real estate listings). It also operates other classifieds (Shiksha, Jeevansathi) and holds stakes in tech firms (e.g. Zomato, PolicyBazaar)...

. Importantly, Info Edge set up Redstart Labs in 2020 as an investment arm to back emerging tech startups

. The company has a history of incubating and investing in high-growth internet companies.

Latest Update:

The Info Edge board has approved an infusion of up to ₹100.00 crore into its wholly owned subsidiary Redstart Labs (India). The funding will be via a preferential allotment of 10 crore equity shares (face value ₹10) of Redstart. Redstart Labs is an Internet-based investment company focused on emerging technologies and science-driven ventures. (In FY2025, Redstart reported a PAT of ₹1.36 crore on a net worth of ₹16.18 crore, illustrating that it is in early growth stage.) The infusion is intended to meet Redstart’s capital needs as it pursues investment opportunities in areas like AI, cloud infrastructure, healthcare technology, etc.

Past Performance Snapshot:

Info Edge’s core internet businesses have shown steady growth. In Q2 FY2026, Info Edge reported billings of ₹729 crore (up ~12% YoY) driven by continued demand for recruitment and realty listings. Its reported profit rose as well. The company maintains strong margins (Info Edge’s standalone EBITDA margins are typically healthy in the 20–30% range) and a strong net cash position (it often generates more cash than its advertising and development expenses). The company is valued for its stable cash flows from Naukri and real estate sites. Importantly, Info Edge has a track record of identifying “unicorn” investments – it backed Zomato and PolicyBazaar early, contributing significantly to its own returns

. Redstart Labs continues that strategy on a smaller scale.

Stock Performance:

Info Edge shares recently traded around the mid-₹1,300s per share. On the day the ₹100cr infusion news broke, the stock opened near ₹1,360 and fell about 2.3% intra-day, touching ~₹1,328 on NSE. Over the prior week, the stock had traded in a range of roughly ₹1,330–₹1,370. Volumes were in line with its average. The one-day price drop reflects near-term profit-booking; in the past month the stock has exhibited sideways-to-slightly-positive movement as the company continued delivering quarterly growth in its core business. (For context, the 52-week range is roughly ₹1,160–₹1,825.)

Investor Insight:

The capital infusion underscores Info Edge’s continued emphasis on technology investments alongside its core services. Points to consider:

1 - Strategic Bet: Infusing ₹100 cr into Redstart boosts the subsidiary’s war chest to make new tech startup investments. Info Edge is essentially recycling some of its cash from profitable core ops into potential high-growth bets.

2 - Short-term Impact: In the near term, this is a cash outflow for Info Edge and did not include any immediate revenues, which may slightly pressure consolidated liquidity. The stock’s brief dip reflects investors weighing this outflow.

3 - Long-term Upside: If Redstart’s investments pan out (e.g., new startups achieving scale), it could generate outsized returns (as it did with Zomato/PolicyBazaar earlier). Investors should watch the sectors Redstart targets (AI, cloud, biotech etc.) and timeline of its dealmaking.

Core Business: Meanwhile, Info Edge’s fundamentals remain driven by its recruitment and real estate verticals. Continued growth there will sustain the base business. Watching Info Edge’s overall billings and margins (plus performance of key affiliate investments) will be important.

In summary, the move reaffirms Info Edge’s model of balancing cash generation from mature internet properties with funding of new-age tech ventures

. Investors may monitor how effectively Redstart deploys the funds and how those investments perform over time, without losing sight of the steady cash flows from Info Edge’s main businesses.