Infoedge’s portfolio performance, Zomato, Meritnation and others

Info Edge, India’s premier online classifieds company and owner of portals such as Naukri.com, 99acres.com and Jeevansaathi.com, has recently disclosed the Q4 FY 13 results, also revealing the status of its subsidiaries.

Info Edge is currently having an investment of around $45 Mn in 7 early stage startups such as Zomato, Meritnation and others. The standalone revenue of Info Edge is reported around $21 Mn, an increase of 9.6% over the last year revenues on account of strong growth in its verticals.  The company’s EBITDA margins have, however dipped to 33.3% on account of high expenses.

If considered the write offs in two companies, Studyplaces and 99 labels, the total investment till date will come to $52 million.

Zomato, the online restaurant guide, has reported a gain of almost 5 times in its operating revenue reaching to $2 Mn,  as compared to $370k last year.  The increase is said to be due to company’s global expansion to London, Johannesburg and Southeast Asia.

However, the company’s EBITDA loss has shown increase by 38.92 % as it reached $1.8 Mn this year from $1.3 Mn last year as company is going into aggressive expansions past one year to Dubai, Abu Dhabi, Sharjah, London, Doha and Colombo.

In the very near term, company will be focusing on increasing its footprint within Philippines, South Africa and UK along with further expansion to markets closer to the existing locations as well as some far flung markets in North and South America.

Zomato was started by IIT Delhi alumni in July 2008 for Delhi NCR and has raised 4 rounds of funding with $16.5 M funds as of March 13. Info Edge, owns a majority stake in Zomato of 57.9% with total investment of $ 15.7 Mn.

Apart from Zomato, the other partly owned subsidiary of Info Edge, Meritnation has shown good revenues of $1.7 Mn, +141%YoY with an EBITDA loss of $3.9 Mn. Meritnation has raised around $11.22 Mn from Info Edge so far.

The total operating revenue and EBITDA loss of other associate companies in the Infoedge portfolio such as Kinobeo Software (mydala), Canvera Digital Technologies, Happily Unmarried Marketing, Policybazaar.com and Nogle Technologies (floost.com) is reported to be around $15mn and $8.32 mn respectively.

AllCheckDeals (ACD), a wholly owned subsidiary of InfoEdge, reported revenues of $2.5mn, growth of 32% in FY13 and operated close to break-even with an EBITDA loss of $1.27K.

The Info Edge portfolio companies are showing a regular increase in revenues along with the losses. However, it may not be the right time to comment on the future prospects of these companies as Info edge has refueled some of them till recently. The companies are definitely showcasing scalability and proving their USPs, but the future returns for InfoEdge depends on how it will deal with it, or can get a successful exit?

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