The company has entered an agreement to invest $1.25 million U.S. into 4B Networks, in exchange for 1,747 compulsorily convertible preference shares (CCPS). Following the investment, Info Edge will hold 12.3% aggregate shareholding in 4B Networks, on a fully-converted and diluted basis, the company announced in a recent BSE filing.
4B Networks is in the business of facilitating a transparent network platform for real estate developers and brokers to communicate and conduct business. “The investment will help the company to strengthen its offering in the real estate segment, by providing a new platform for real estate industry professionals to conduct their business efficiently,” said Info Edge, in the filing.
Following the announcement, Chintan Thakkar, CFO of Info Edge, spoke to CNBC, detailing the reason behind the investment. Thakkar said the company is looking for investment opportunities, that can complement Info Edge’s operations, particularly recruitment and real estate. “We want to create a synergetic ecosystem for our businesses,” Thakkar explained.
Investment into 4B Networks follows an encouraging quarter for Info Edge, which saw the company register $41.8 million in revenues for Q3, FY20-21 — a 7.5% quarter-on-quarter increase. Real estate business 99Acres accounted for $6.1 million of the revenues, which is a 23% quarter-on-quarter increase.
Headquartered in Noida, Info Edge owns and operates several digital businesses in India and abroad. The company has over 4,500 employees working out of 80 offices in 47 cities across India and the Middle East.