Info Edge bets big on AI, Deeptech, invests Rs 1,003 cr in 54 startups since 2020, portfolio now at Rs 41,300 cr
New Delhi, June 22
Info Edge has said that Artificial Intelligence, Deeptech and Consumer Technology are expected to drive future value creation, with the company having invested Rs 1,003 crore in 54 AI and deeptech startups since 2020, many of them before the global AI investment wave gained momentum.
In a letter to shareholders on Monday, the company said it began investing in AI and deeptech around 2020, well ahead of the broader market trend, backing startups across enterprise AI, robotics, semiconductors, spacetech, biotech and electric mobility.
The company said it prefers to invest in companies domiciled in India and led by Indian founders, whether they are building for domestic or global markets.
The letter stated, "We began investing in AI and deeptech in 2020 - ahead of the broader market wave We made our first investments in these two themes circa 2020, well before AI became the consensus investment it is today. We have since deployed over Rs 1,003 Cr. across 54 AI-native and deeptech companies".
According to the letter, Info Edge has invested Rs 614 crore across 28 AI startups. The portfolio is currently valued at Rs 1,268 crore, implying a 2.1x multiple and an estimated gross internal rate of return (IRR) of around 31 per cent. Out of the 28 AI companies, 15 have raised externally-led follow-on rounds from institutional investors.
The company also highlighted that several AI startups in its portfolio are contributing to national technology initiatives. Voice AI startup Gnani.ai was selected under the IndiaAI Mission and received Rs 177 crore worth of government GPU compute credits.
On the deeptech front, Info Edge has invested Rs 455 crore across 30 companies. The portfolio is currently valued at Rs 559 crore, translating into a 1.2x multiple and an estimated gross IRR of around 15 per cent.
The company noted that deeptech investments are relatively younger, as most were made at the intellectual property creation and research-and-development stage.
Among the deeptech startups, ePlane and Manastu Space secured allocations under the government's Research Development and Innovation (RDI) scheme. ePlane received Rs 285 crore, the largest allocation among the 22 approved proposals, while Manastu Space received Rs 115 crore.
Info Edge said consumer technology continues to remain the largest segment of its startup portfolio. The company has invested Rs 2,755 crore across 45 consumer-tech and consumer-AI startups, which are currently valued at Rs 37,214 crore, reflecting a 13.5x multiple and an estimated gross IRR of around 34 per cent.
Overall, Info Edge and its managed funds have invested around Rs 4,900 crore across 135 startups spanning AI, deeptech, consumer technology, SaaS, fintech and other sectors. The portfolio is now valued at around Rs 41,300 crore.
It stated, "In total, we have deployed Rs ~4,900 Cr. across 135 companies through various pools of money that we manage. This is now valued at Rs ~41,300 Cr"
The company said it believes India is entering a phase where globally relevant technology companies will increasingly be built from India, not just for India, with AI expected to reshape both startups and established internet businesses in the years ahead.
— ANI
Reader Comments
Impressive numbers but 1.2x return on deeptech investments is quite low. Makes sense since they're early stage IP plays, but I hope they have patience. ePlane and Manastu Space getting government RDI allocations is a big plus though!
The best part? They're backing Indian founders building for global markets. This is exactly how we stop being just a back office and become a genuine innovation hub. Gnani.ai getting selected under IndiaAI Mission with ₹177 crore GPU credits is a great validation. 👏
While the AI portfolio shows 2.1x returns, consumer tech remains the real money spinner at 13.5x. Info Edge knows where their bread is buttered. But I'm a bit concerned about the deeptech multiple - 1.2x is barely above cost. Hope they have deeper pockets for the long haul.
As someone who works in tech, this is heartening. Indian startups finally getting serious funding for R&D rather than just building Zomato clones. The spacetech and biotech investments are particularly exciting. What a time to be an Indian engineer! 🚀
Honest question: how many of these 135 companies are actually profitable? Nice numbers on paper but we need to see real exits and returns. Still, credit to Info Edge for taking early bets when everyone was scared of deeptech. That takes courage in a risk-averse country.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.