Zomato, Canvera & Other Info Edge Portfolio Companies Grow Revenue, Post Losses

Zomato New LogoEight companies in which Info Edge (India) Limited has invested have together posted an operating loss of Rs 77.7 cr in FY13, up 69% from Rs 46 cr in the previous year.

Seven partly owned subsidiaries including Zomato, Canvera, Happily Unmarried and Floost posted combined operating revenue of Rs 107.8 cr this year, up 80% compared to the previous year. Allcheckdeals, the company’s fully owned subsidiary posted a 31% increase in revenues at Rs 14 cr in FY13.

At the comapany’s earnings call this year, Hitesh Oberoi, the CEO of Info Edgel (India) Limited said:

Subsidiary companies are losing money, that is why they need more investments. But they are investing for growth..for the future and we don’t expect them to break even in the short-term. Not Zomato. I do not expect Zomato to breakeven in the next 12 months because they are entering new markets.

Both Zomato and Meritnation are dominant players in their category, said Oberoi. He added that the company was bullish on their prospects in medium term.

The company wrote off Rs 29 crores it had invested in 99lables in the year. Info Edge also made an investment of Rs 30 cr in Meritnation in Q4. PolicyBazaar got a Rs 2.5 cr additional investment and Info Edge acquired MakeSense for Rs 8 cr. Info EdgeOn a consolidated basis, revenues of the parent company, Info Edge (India) limited, which runs companies like Naukri.com & Jeevansathi.com, grew 20.5% in FY13 to Rs 472.3 cr. The company’s net profit declined 17% for the full year to Rs 91.6 cr compared to Rs 103.3 cr last year.

Leave a Reply

Sign Up for NextBigWhat Newsletter