Info Edge, an early investor in Zomato, has approved a commitment of up to ₹250 crore to a new deep tech-focused investment vehicle.
The fund, A88 Fund I, has been launched under A88 Trust and registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternative Investment Fund.
Backing Early-Stage Innovation
As part of its investment strategy, Info Edge will sponsor and manage the fund through its subsidiary, Smartweb Internet Services.
The fund will focus on early-stage deep tech startups in India, targeting innovation-driven ventures.
At its core, the mandate aims to support companies working on advanced technologies while generating long-term returns for investors.
Notably, launched in February 2026, A88 Fund I follows a structured 12-year lifecycle.
Over this period, the fund will deploy capital gradually, aligning investments with evolving market opportunities.
Exit from Shopkirana
At the same time, Info Edge has approved the sale of its entire 26.14% stake in Shopkirana.
The company will transfer this stake, held through Startup Investments (Holding) Limited, to Trustroot Internet Private Limited.
The deal is valued at approximately $33 million.
Together, these moves reflect a strategic shift, balancing new investments in deep tech with exits from existing portfolio companies.
Reallocation of Capital
As part of the transaction, Info Edge will receive preference shares in Trustroot Internet, translating to a small equity stake in the Singapore-based entity.
It will also invest an additional $1.72 million into the firm, bringing its total holding to just over 2% after completion.
The transaction is expected to close by June 30, 2026, subject to regulatory approvals.
Portfolio Realignment
Following the deal, Shopkirana will no longer be classified as an associate company of Info Edge.
The company described both the divestment and the fund investment as part of a broader strategy to optimize capital allocation and focus on long-term value creation.
A Clear Investment Direction
The move signals a shift in priorities.
Info Edge is repositioning itself toward high-potential, technology-driven ventures while exiting mature or non-core investments.
Deep tech, with its longer gestation cycles and higher barriers to entry, aligns with the company’s strategy of backing foundational innovation rather than incremental growth.
Balancing Risk and Long-Term Value
The combination of exiting an existing portfolio company and committing fresh capital to a long-duration fund reflects a disciplined approach to capital recycling.
It prioritizes future opportunity over legacy holdings, with a clear tilt toward sectors expected to shape the next phase of India’s startup ecosystem.
Photo: Info Edge founder Sanjeev Bikhchandani
