Info Edge rallies over 7%, hits 52-week high on additional investment in Zomato

NEW DELHI: Info Edge Ltd surged as much as 7.05 per cent in trade on Wednesday to hit its fresh 52-week high of Rs 1014.70, after the company informed BSE that it is committed to make an additional investment of an amount of about Rs.1.85 billion or Rs 185 crore in the shares of Zomato Media Private Ltd.

Online restaurant guide Zomato has closed a fresh round of funding round of $60 million at a post-money valuation of about $660 million. Zomato owns and operates an online food guide portal www.zomato.com.

The funds will be used to accelerate Zomato's global expansion and new product development, said an ET report.

At 09:50 a.m.; Info Edge pared most of its morning gains but was still trading 2.9 per cent higher at Rs 976. It hit a low of Rs 955.10 and a 52-week high of Rs 1014.70 in trade today.

This round of funding is being led jointly by Info Edge (India) Limited and UAE based Vy Capital, with participation from Sequoia Capital.

According to the ET report, in the fresh funding of $60 million announced the company has been valued at over $660 million (Rs 4,072 crore). That makes it over 40 times the revenue of about Rs 100 crore, it is targeting for the year.

This takes Zomato's total funding to over $113 million. Zomato has earlier raised about $53 million from Info Edge (India) Limited and Sequoia Capital over multiple rounds of funding.

Info Edge which owns about 50 per cent stake in the company said it would be subscribing/purchasing equity shares and convertible preference shares of Zomato Media Private Limited.

Upon disbursement of this amount, the total amount invested by Info Edge in Zomato Media Private Limited will be about Rs. 3.27 billion or Rs 327 crore and the shareholding of Info Edge in Zomato Media Private Limited, post aforesaid aggregate fund raise of Rs.3.70 billion or Rs 370 crore, will be maintained at 50.1 per cent on a fully converted and diluted basis, Info Edge said in a release on the BSE.