Info Edge (India) Limited, a leading player in the digital services and online recruitment industry, has announced a significant development today, as its Board of Directors approved the execution of a contribution agreement with IE Venture Investment Fund III. This fund, to be launched by Karkardooma Trust and registered with SEBI as a Category II Alternative Investment Fund (AIF), will receive a commitment of up to ₹1,000 crore from Info Edge, directly or through its wholly-owned subsidiary, Smartweb Internet Services Ltd.
The contribution is subject to the approval of SEBI and the shareholders of Info Edge, and the transaction, falling under the category of material-related-party transactions, will require shareholder approval. Smartweb Internet Services Ltd. is poised to act as the sponsor and investment manager for the Trust and its schemes. The announcement reveals that the investment is aligned with Info Edge’s long-term strategy to enhance value creation through strategic external financial investments.
The contribution agreement, which is expected to be finalized following SEBI and shareholder approval, sets a twelve-year term for the scheme, with the possibility of an extension for up to two additional years. The first closing will mark the start of drawdowns, with the company committing to up to ₹1,000 crore as part of the cash consideration for the investment.
Karkardooma Trust has received in-principle approval from SEBI for registration as an AIF, with the full registration certificate and approval for the IE Venture Investment Fund III scheme pending. The fund will focus on investments aimed at generating value over the medium to long term.
