InfoEdge has allocated nearly 50% of its startup investments to deeptech and artificial intelligence over the last 12 months. This represents a significant shift from the firm’s traditional focus on consumer technology bets, which previously yielded successful ventures like Eternal (Zomato and Blinkit) and PB Fintech. The strategic pivot is driven by the perceived transformational potential of these emerging sectors.
The company, led by Sanjeev Bikhchandani, has historically concentrated its InfoEdge investments on early-stage consumer tech companies. This approach helped build multi-billion-dollar entities that became prominent in the market. The current move into deeptech and AI indicates a re-evaluation of growth opportunities and market dynamics.
Chinmaya Sharma, a partner at InfoEdge Ventures, stated that both AI and deeptech are “absolutely transformational in their ability to create new business models.” He added that these sectors have also become “topics of strategic interest for the country.” This dual motivation underscores the firm’s rationale for diversifying its investment portfolio.
Since 2020, InfoEdge has invested a total of ₹455 crore across 30 deeptech companies. During the same period, the firm deployed ₹614 crore into 28 AI companies. This sustained investment over several years highlights a deliberate strategy rather than a short-term trend.
The performance of these new portfolios shows varying returns. InfoEdge’s AI portfolio has achieved a gross internal rate of return (IRR) of approximately 31% and a gross multiple on invested capital (MOIC) of 2.1x. The deeptech portfolio, being earlier in its investment cycle, currently holds a gross IRR of 15% and a gross MOIC of 1.2x.
Follow-on funding rates differ between the two segments. Within the deeptech portfolio, 26 companies have successfully raised additional funding. In the AI segment, 15 companies have secured follow-on investments, including Gnani.ai, an enterprise platform specializing in voice AI.
InfoEdge’s deeptech portfolio includes diverse companies such as Ahammune, a skin health therapeutics startup, ePlane, an electric air taxi company, Deepinder Goyal’s air mobility startup LAT Aerospace, and Temple, a health tracking company. These investments span various sub-sectors within deeptech, reflecting a broad approach.
The firm’s strategy of investing in very early-stage startups has provided a degree of insulation from broader market fluctuations. Sharma noted that this early-stage focus means valuations are “somewhat unaffected by the high tides and low tides of in the public market.” He further explained that public market gloom has not “seep into the early stage” on a month-on-month or quarter-on-quarter basis.
The long-term impact of this strategic shift on InfoEdge’s overall portfolio performance remains to be seen. The differing returns and follow-on funding rates between AI and deeptech suggest that while both are considered transformational, their maturation timelines and risk profiles may vary. Future developments in these sectors and the broader economic environment will influence the ultimate success of these new investment directions.
Investors will monitor how InfoEdge continues to balance its traditional consumer tech strengths with its increasing commitment to deeptech and AI. The firm’s ability to identify and nurture early-stage companies in these complex fields will be key to sustaining its investment returns and market position.