Naukri.com’s parent Info Edge commits Rs 1,000 crore to IE Venture Investment Fund III

Job portal Naukri.com’s parent company, Info Edge (India) Ltd, has approved plans to contribute as much as Rs 1,000 crore to IE Venture Investment Fund III, a fund that Karkardooma Trust will launch.

The move aims to expand Info Edge’s external financial investments in emerging businesses and is subject to approvals from the Securities and Exchange Board of India (SEBI) and the company’s shareholders.

Investment structure and purpose

Info Edge’s board, at its meeting on February 5, cleared the proposal to sign a contribution agreement that would allow the company to commit up to Rs 1,000 crore either directly or through its wholly owned subsidiaries.

IE Venture Investment Fund III is a proposed Category II Alternative Investment Fund, which is in the process of receiving its registration certificate from SEBI. Once the fund is established, Info Edge will inject capital over some time, following multiple drawdowns.

Info Edge said this step aligns with its broader strategy to pursue medium- to long-term value creation through strategic investments. The plan involves placing cash in the new fund, with the company acquiring units at face value once regulatory approvals are granted.

Related party transaction

The proposed deal qualifies as a related party transaction because the sponsor and investment manager of the new fund is Smartweb Internet Services Ltd, a wholly owned subsidiary of Info Edge.

Under SEBI’s guidelines, this arrangement means the transaction must receive shareholder approval. The promoters of Info Edge have no personal interest in the investment, and the company has stated that the arrangement is being done at an arm’s-length basis.

Regulatory and shareholder approvals

Since the investment requires the launch of the IE Venture Investment Fund III, Info Edge must first secure SEBI’s sign-off on the new fund.

The company also needs shareholder approval, given the size of the commitment and its classification as a material-related party transaction.

Once all approvals are obtained, the parties plan to sign the contribution agreement, and drawdowns are expected to happen over the 12-year term of the fund, which can be extended if two-thirds of the investors consent.