Info Edge India Ltd., the parent company of Naukri and 99Acres, has invested $2.4 million U.S. (INR200 million) in software development startup RedStart Labs. According to a disclosure, RedStart Labs is a wholly owned subsidiary of Info Edge, making the investment a related-party transaction.
According to Info Edge, this investment is aimed at accelerating RedStart’s development and making it more attractive to external investors. RedStart posted an after-tax profit of $34,422 U.S. during the 12 months to March 2022 (FY21-22).
Incorporated in July 2022, RedStart Labs also provides consultancy services, technical support for companies and SaaS (software as a service) solutions. Info Edge hopes that RedStart will create synergies with its core businesses.
In January this year, Info Edge invested $1.2 million in Gramophone, another wholly owned subsidiary. It has also invested $2.8 million in Lumiq, a data analytics startup. RedStart Labs also participated in Lumiq’s Series A funding round.
Info Edge posted revenue of $67.3 million in Q3 FY22-23 (the three months Dec. 2022). It has a team of over 4,500 working in 66 offices across 45 cities across India and the Middle East.