Info Edge (India) shares rally up to 4% as AI startup portfolio value more than doubles to ₹1,268 crore

Shares of Info Edge (India) surged as much as 4% to ₹1,024.80 apiece on the NSE in early trade on Tuesday, June 23, after the company shared an update on its investments in artificial intelligence (AI), deeptech and consumer technology startups through both direct investments and its alternative investment funds (AIFs).

In a letter to shareholders, the company said it has invested ₹614 crore across 28 AI startups so far, with the portfolio now valued at ₹1,268 crore. This translates into a 2.1x multiple on invested capital and a gross internal rate of return (IRR) of nearly 31%.

Info Edge added that 15 of the 28 portfolio companies have raised externally led follow-on funding rounds from leading institutional investors, including Insight Partners, Left Lane, Peak XV, SIG and Vertex, underscoring the growing traction of its AI-focused investments.

Other key details

Info Edge said it has invested ₹1,003 crore across 54 AI and deeptech startups since 2020, with many of these investments made well before the recent global surge in AI-related funding.

The company noted that it entered several businesses at an early stage of their lifecycle, backing innovation across sectors such as enterprise AI, robotics, semiconductors, spacetech, biotech and electric mobility.

On its deeptech portfolio, Info Edge said the segment is relatively younger as most investments were made during the intellectual property (IP) creation and research and development (R&D) phase.

The company has invested ₹455 crore across 30 deeptech startups, which are currently valued at ₹559 crore, translating into a 1.2x multiple on invested capital and a gross IRR of around 15%.

Of these, 13 companies have raised externally led funding rounds from institutional investors and sovereign programmes, indicating growing validation of the portfolio.

• Several portfolio companies have been selected under flagship Government of India programmes, including the IndiaAI Mission and the RDI scheme. Voice AI startup Gnani.ai was selected under the IndiaAI Mission and received government GPU compute credits worth ₹177 crore.

• Deeptech startups ePlane and Manastu Space secured significant R&D allocations under the new RDI scheme. ePlane received the single-largest allocation nationally at ₹285 crore among the 22 approved proposals, while Manastu Space received ₹115 crore. The RDI allocations are subject to the companies securing matching capital from investors.

• Consumer technology continues to account for the largest share of Info Edge's portfolio. The company has invested ₹2,755 crore across 45 consumer-tech and consumer-AI startups, which are now valued at ₹37,214 crore, implying a 13.5x multiple and a gross IRR of around 34%.

• Info Edge has invested a total of around ₹4,900 crore across 135 startups spanning multiple sectors. The portfolio is now valued at approximately ₹41,300 crore, translating into an 8.4x multiple and a gross IRR of about 33%.

Of the total investments, around ₹3,600 crore has been deployed by Info Edge and its group companies, while the remaining ₹1,300 crore has been invested by external limited partners (LPs) in the alternative investment funds (AIFs) managed by the company. The combined gross IRR of these AIFs stands at around 22%.

• "We prefer to invest in companies domiciled in India and founded by Indian entrepreneurs, irrespective of whether they are building for India or global markets," the company said.

• "We believe future value creation will be driven predominantly by three themes — Artificial Intelligence, Deeptech and Consumer Technology — with AI expected to reshape both startups and established internet businesses. In our view, India is entering a phase where globally relevant technology companies will increasingly be built from India, not just for India," it added.