Info Edge Approves Contribution to A88 Fund and Transfer of Stake in Shopkirana
Info Edge (India) Ltd. announced on March 27, 2026, that its Board of Directors approved a contribution agreement with A88 Fund I, a scheme launched by A88 Trust, to commit up to Rs. 250 crore in aggregate, directly or through its wholly-owned subsidiaries, including Smartweb Internet Services Limited. The Board also approved the transfer of Info Edge’s entire stake in Shopkirana E Trading Private Limited to Trustroot Internet Private Limited (TIPL).As part of the transaction, Startup Investments (Holding) Limited (SIHL), a wholly-owned subsidiary of Info Edge, will transfer 60,673 shares, representing a 26.14% stake in Shopkirana, to TIPL. In exchange, TIPL will issue and allot 104,868 preference shares, representing a 2.021% stake, to SIHL. The consideration for the share transfer is USD 32,970,499.20, and the value of the TIPL shares issued to SIHL is USD 314.40 per share.
Additionally, SIHL plans to invest USD 1,724,169.60 in TIPL by subscribing to 5,484 preference shares, representing a 0.105% stake. Following these transactions, Shopkirana will cease to be an associate company of SIHL, and SIHL will hold approximately 2.126% stake in TIPL. The transactions qualify as an overseas direct investment and will be routed through an authorized dealer bank.
The contribution to A88 Fund I is expected to be made over time during the fund’s lifetime and is subject to various conditions precedent. The closing of the transaction remains subject to clearance from an authorized dealer bank.
Table 1: Contribution Agreement with A88 Fund I
| Particulars | Details | Details | Details |
|---|---|---|---|
| Name of the target entity | A88 Trust (Fund) is registered with SEBI as a Category II Alternative Investment Fund. Address: Ground Floor, 12 A, 94, Meghdoot Building, Nehru Place, New Delhi - 110019 | A88 Trust (Fund) is registered with SEBI as a Category II Alternative Investment Fund. Address: Ground Floor, 12 A, 94, Meghdoot Building, Nehru Place, New Delhi - 110019 | A88 Trust (Fund) is registered with SEBI as a Category II Alternative Investment Fund. Address: Ground Floor, 12 A, 94, Meghdoot Building, Nehru Place, New Delhi - 110019 |
| Turnover | NA | NA | NA |
| Whether the acquisition falls within related party transactions | Yes. The investment will be regarded as a related party transaction as Smartweb Internet Services Ltd. will act as the Sponsor and Investment Manager of the Fund. | Yes. The investment will be regarded as a related party transaction as Smartweb Internet Services Ltd. will act as the Sponsor and Investment Manager of the Fund. | Yes. The investment will be regarded as a related party transaction as Smartweb Internet Services Ltd. will act as the Sponsor and Investment Manager of the Fund. |
| Industry | Early stage deep tech companies in India | Early stage deep tech companies in India | Early stage deep tech companies in India |
| Indicative time period for completion | The contribution agreement will be signed, and the investment made directly or through Smartweb Internet Services Ltd. The life of the Scheme is 12 years and may be extended up to 2 years. | The contribution agreement will be signed, and the investment made directly or through Smartweb Internet Services Ltd. The life of the Scheme is 12 years and may be extended up to 2 years. | The contribution agreement will be signed, and the investment made directly or through Smartweb Internet Services Ltd. The life of the Scheme is 12 years and may be extended up to 2 years. |
| Consideration | Up to Rs. 250 crore | Up to Rs. 250 crore | Up to Rs. 250 crore |
| Percentage of shareholding acquired | Units of the A88 Fund I | Units of the A88 Fund I | Units of the A88 Fund I |
Table 2: Transfer of Shares in Shopkirana to TIPL and Investment in TIPL
| Particulars | Details | Details | Details |
|---|---|---|---|
| Turnover (Shopkirana) | Rs. 471.26 crore (Rs. in crores) | Rs. 469.33 crore (Rs. in crores) | Rs. 4,561.4 crore (Rs. in crores) |
| Networth (Shopkirana) | Rs. 22.56 crore | Rs. 4,561.4 crore (Rs. in crores) | Rs. 5,706.6 crore (Rs. in crores) |
| Date of Agreement | Within 1 month from Board approval | Within 1 month from Board approval | Within 1 month from Board approval |
| Expected Completion Date | June 30, 2026 | June 30, 2026 | June 30, 2026 |
| Consideration | USD 32,970,499.20 for shares, and USD 314.4 per share of TIPL | USD 32,970,499.20 for shares, and USD 314.4 per share of TIPL | USD 314.4 per share of TIPL |
| Shares Transferred | 60,673 shares (26.14%) | 60,673 shares (26.14%) | 5,484 shares (0.105%) |
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