BSE-listed Info Edge has invested Rs. 20 crore ($ 4.18 million) in New Delhi-based Applect Learning Systems, a content developer in the education sector which runs Meritnation.com, a website offering learning solutions in the K-12 segment. Info Edge has further invested Rs. 13.5 crore ($ 2.82 million) in Gurgaon-based DC Foodiebay Online Services, which runs the restaurant directory site Zomato.com.
J. Sagar Associates advised Info Edge with a team led by Partner Rohitashwa Prasad along with Senior Associate Abhishek Shinde.
Both Applect and DC Foodiebay online were advised by their in-house team.
According to dealcurry, Info Edge owns and manages - Naukri.Com, Jeevansathi.Com, 99acres.Com, Shiksha.com apart from Quadrangle, an offline executive search firm and Naukri Gulf. Info Edge also owns Brijj.com, a professional networking site and Allcheckdeals.Com, a real estate brokerage firm.
VCCircle reports, Info Edge has invested a total of Rs 11.5 crore in Applect in two rounds of funding – Rs 6.5 crore for 40 per cent stake in 2008 and a follow-up of Rs 5 crore in May 2010. In both these fundings, Info Edge was advised by JSA. Applect is a subsidiary of Info Edge and offers content development services for the education sector. Meritnation.com currently has 18 lakh registered users, of which 85-90 percent are active. The funds will be used for furthering the company’s content development, hiring, marketing as well as new product development.
This is Info Edge’s second round of investment in Zomato. In August 2010, it had invested Rs 4.7 crore ($1 million) in what was Zomato’s first round of funding. The capital was used to fund the start-up’s product development, sales and marketing efforts. The fresh round of funding will be used to ramp up its employee base and open more offices. However, the promoters continue to hold a majority share in the company.