QUICK TAKE
|
The Announcement: A Deeptech Double-Down
Info Edge (India) Ltd, the parent of Naukri.com, 99acres.com, Jeevansathi.com, and Shiksha.com — and historically one of India’s most consequential early-stage investors, having backed Zomato and Policybazaar before either became household names — has made its most explicit commitment yet to the deeptech era.
At a board meeting on March 27, 2026, the company approved a contribution of up to Rs 250 crore to A88 Fund I, a scheme launched by A88 Trust, registered with SEBI as a Category II Alternative Investment Fund. The fund, which was launched in February 2026, will be sponsored and managed by Smartweb Internet Services Limited, a wholly owned subsidiary of Info Edge.
The stated objective of the scheme is “to generate long-term growth for the contributors and support the Indian entrepreneurial ecosystem by investing in early-stage deep tech companies in India (or primarily focused in India).” Capital contributions will be drawn down over time depending on investment opportunities and prevailing market conditions, rather than deployed as a single tranche.
Critically, this is not Info Edge’s first large fund commitment in 2026. Just one month earlier, on February 26, 2026, the company’s board approved an identical Rs 250 Cr commitment to a separate fund — B8 Fund I — also managed by Smartweb, but focused on growth-stage tech-enabled companies rather than early-stage deeptech. In a single month, Info Edge has committed Rs 500 Cr across two new AIF vehicles, signalling a structural acceleration in its capital deployment strategy.
A88 Fund I: What We Know
A88 Fund I sits at the early stage of the deeptech spectrum — targeting companies in artificial intelligence, machine learning, and adjacent deeptech domains at their earliest institutionally investable phases. The fund’s 12-year lifecycle (extendable) reflects the long gestation periods typical of deeptech companies, where fundamental scientific work must precede commercial product development and scale.
A88 Fund I — Key Parameters
| Parameter | Details |
|---|---|
| Fund Name | A88 Fund I |
| Trust | A88 Trust (registered under Indian Trusts Act, 1882) |
| SEBI Category | Category II Alternative Investment Fund |
| Launch Date | February 2026 |
| Sponsor & Manager | Smartweb Internet Services Limited (wholly owned subsidiary of Info Edge) |
| Info Edge Commitment | ₹250 Cr (~$26.5 Mn) — drawn down over fund lifecycle |
| Board Approval | March 27, 2026 (Info Edge Board of Directors meeting) |
| Investment Focus | Early-stage deeptech startups in India, with AI and ML applications emphasis |
| Fund Lifecycle | 12 years, with possibility of extension (up to ~14 years) |
| Related Party Status | Will be treated as related party transaction once investment management agreement between trustee and Smartweb is formalised |
| Arm’s Length | Confirmed: promoter, promoter group, and group companies have no interest; transaction on arm’s length basis |
| Fund Address | Ground Floor, 12A, 94, Meghdoot Building, Nehru Place, New Delhi – 110019 |
Unlike a traditional venture capital fund that pools capital from multiple limited partners, A88 Fund I — at least at the commitment stage — is anchored by Info Edge’s own capital. Whether the fund will seek external co-investors beyond Info Edge’s own subsidiaries has not been disclosed in the regulatory filing. The structure closely mirrors the approach taken with B8 Fund I, where the initial Rs 250 Cr commitment also came from Info Edge’s own balance sheet and subsidiaries.
Two Funds, One Month: The A88 + B8 Strategy Decoded
The most striking aspect of Info Edge’s March 2026 announcement is the context: it comes exactly one month after an identical Rs 250 Cr commitment to B8 Fund I. The two funds, while both managed by Smartweb and both SEBI-registered Category II AIFs, target distinct stages of the startup lifecycle.
B8 Fund I — launched February 12, 2026 — targets growth-stage, tech-enabled companies. It fills what analysts have identified as a structural gap in Info Edge’s investment architecture: a formal vehicle for later-stage bets where companies have product-market fit but need capital to scale. A88 Fund I, by contrast, goes earlier: early-stage deeptech with AI and ML at the core of its mandate.
Together, the two funds represent Rs 500 Cr of capital commitment deployed in a single month, building out a lifecycle-spanning investment capability that Info Edge’s competitors in the Indian listed company space have not yet replicated at this speed.
A88 Fund I vs B8 Fund I — Side-by-Side Comparison
| Dimension | A88 Fund I | B8 Fund I |
|---|---|---|
| Board Approval | March 27, 2026 | February 26, 2026 |
| Launch Date | February 2026 | February 12, 2026 |
| SEBI Category | Category II AIF | Category II AIF |
| Trust | A88 Trust | B8 Trust |
| Manager | Smartweb Internet Services Ltd | Smartweb Internet Services Ltd |
| Info Edge Commitment | ₹250 Cr | ₹250 Cr |
| Investment Stage | Early-stage deeptech | Growth-stage tech-enabled companies |
| Sector Focus | Deep tech, AI, ML applications | Tech-enabled, broader definition |
| Fund Lifecycle | 12 years (extendable to ~14 years) | Not specified; similar structure |
| Strategic Purpose | Fill seed-to-Series A deeptech gap | Fill Series B to growth gap — a previously missing lifecycle layer |
| Combined FY26 Commitment | ₹500 Cr across both funds in one month — Info Edge’s fastest capital deployment cycle | |
Info Edge’s Full Investment Architecture: Five Pools Of Capital
To understand the significance of A88 Fund I, it is essential to view it within the complete context of Info Edge’s investment architecture — which, with the addition of A88 and B8, has evolved into one of the most sophisticated multi-vehicle investment platforms operated by a listed Indian technology company.
Info Edge now deploys capital across five distinct pools, spanning from seed-stage deeptech through to growth-stage tech companies, each with a separate mandate, vehicle, and governance structure.
Info Edge Complete Investment Architecture — March 2026
| Vehicle | Vintage | Corpus | Stage / Focus | Key Portfolio Companies |
|---|---|---|---|---|
| Info Edge Ventures | Since 2020 | ₹2,300 Cr(3 funds) | Series A–C; internet & tech-enabled | Multiple consumer internet, SaaS, B2B startups across 3 fund vintages |
| Capital 2B | 2022+ | ₹280 Cr(1 fund) | Deeptech & enterprise startups | Focus on deeptech subsectors and enterprise SaaS |
| Redstart Labs | 2023+ | ₹100+ Cr(Internal seed) | Seed-stage deeptech & SaaS | Unbox Robotics, BrainSight AI, Skylark Drones, The ePlane Company, CynLr |
| B8 Fund I (NEW) | Feb 2026 | ₹250 Cr(committed) | Growth-stage, tech-enabled | First dedicated growth vehicle. Fills lifecycle gap between Series B and late-stage. |
| A88 Fund I (NEW) | Feb 2026 | ₹250 Cr(committed) | Early-stage deeptech, AI, ML | To be built; AI and ML applications focus. 12-year fund life. |
| Balance Sheet (SIHL) | Ongoing | Flexible | Opportunistic: seed to later stage | Pascal AI Labs, Zwayam Digital, Attentive.ai; plus Shopkirana (exiting), Trustroot (new) |
| Total Committed Capital (Funds) | Info Edge Ventures: ₹2,300 Cr + Capital 2B: ₹280 Cr + Redstart: ₹100+ Cr + B8: ₹250 Cr + A88: ₹250 Cr = ₹3,180+ Cr across all formal fund vehicles | |||
The addition of A88 Fund I is particularly significant because it closes the earliest-stage gap in the architecture. Redstart Labs has operated as an internal seed platform, but A88 Fund I gives the deeptech mandate a formal, regulated, SEBI-supervised structure — with a 12-year lifecycle appropriate for the patient capital requirements of foundational AI research and hardware-software deeptech.
The Deeptech Pedigree: What Redstart Has Already Built
Info Edge’s deeptech ambitions are not abstract. Through Redstart Labs, the company has already built a meaningful early-stage deeptech portfolio that gives A88 Fund I a clear investment thesis to build upon. The Redstart portfolio includes some of India’s most technically ambitious startups across robotics, AI healthcare, drone technology, electric aviation, and industrial automation.
Redstart Labs Portfolio — India’s Deeptech Seed Bets
| Company | Sector | Technology | Why It Matters |
|---|---|---|---|
| Unbox Robotics | Logistics Tech | Warehouse sorting robotics | AI-powered robotic sorting systems for e-commerce and 3PL warehouses. Deep IP in multi-agent robot coordination. |
| BrainSight AI | Healthcare AI | Neuroimaging AI diagnostics | AI platform for brain MRI analysis. Addresses a major gap in neurology diagnostics across Tier 2/3 India. |
| Skylark Drones | Drone Tech | Enterprise drone software | Full-stack drone operations platform. Defence and civil infrastructure use cases. Regulatory tailwinds post-PLI drone scheme. |
| The ePlane Company | Electric Aviation | eVTOL / electric aircraft | IIT Madras spinout. Building India’s first electric aircraft. 12-15 year play — exactly the horizon A88 Fund I is designed for. |
| CynLr | Industrial Robotics | Visual industrial manipulation | Developing robots that can see and manipulate complex objects. Fundamental vision AI for industrial automation. |
| Pascal AI Labs | AI / Foundation | AI research & applied models | Direct AI play from Info Edge’s balance sheet. Signals commitment to foundational AI model development in India. |
| Zwayam Digital | HR Tech AI | AI-powered recruitment | Natural adjacency to Naukri.com. AI-native hiring platform. Cross-portfolio synergy with Info Edge’s core business. |
| Attentive.ai | Construction AI | AI for construction monitoring | Computer vision applied to construction site management. 99acres.com cross-portfolio synergy potential. |
The Simultaneous Exit: Shopkirana Out, Trustroot In
The A88 Fund I announcement was made alongside a separate but strategically interconnected decision: Info Edge is exiting its 26.14% stake in Shopkirana E Trading Private Limited, a B2B retail technology startup, through a share-swap arrangement with Trustroot Internet Private Limited — the Singapore-incorporated parent company of B2B marketplace Udaan.
The deal structure is notable. Rather than a straightforward cash sale, Info Edge’s subsidiary SIHL (Startup Investments Holding Limited) will transfer its 60,673 shares in Shopkirana — representing a 26.14% fully diluted stake — to Trustroot, in exchange for 1,04,868 preference shares in TIPL, representing a 2.021% stake. Info Edge will also invest an additional $1.72 Mn for an incremental 0.105% stake. The total consideration is approximately $32.97 Mn.
The transaction is expected to close by June 30, 2026, subject to authorised dealer bank clearance and execution of definitive agreements. Post-closing, Shopkirana will cease to be an associate company of SIHL.
Shopkirana → Trustroot Deal Structure
| Component | Details |
|---|---|
| Seller | SIHL (Startup Investments Holding Limited) — wholly owned subsidiary of Info Edge |
| Buyer | Trustroot Internet Private Limited (TIPL) — Singapore-incorporated parent of Udaan |
| Asset Sold | 60,673 shares in Shopkirana E Trading Pvt Ltd = 26.14% fully diluted stake |
| Consideration | $32,970,499.20 (~Rs 275 Cr / ~$33 Mn) |
| What Info Edge Receives | 1,04,868 TIPL preference shares = 2.021% stake in Trustroot (Udaan’s parent) valued at $314.40/share |
| Additional Investment | SIHL also investing $1.72 Mn in TIPL for additional 0.105% stake |
| Net Effect | Info Edge exits Shopkirana directly — retains indirect exposure to kirana/FMCG supply chain through Udaan via TIPL stake |
| Shopkirana Financials | FY25 Total Income: Rs 471.26 Cr | Turnover: Rs 469.33 Cr | Networth: Rs 22.56 Cr |
| Trustroot Financials | FY25 Revenue: Rs 4,561 Cr | Net Loss: Rs 1,055 Cr (Udaan group, loss-making at consolidated level) |
| Expected Closing | By June 30, 2026 (subject to authorised dealer bank clearance) |
| Shopkirana Context | Udaan had acquired Shopkirana in July 2025 to deepen focus on profitability in kirana distribution |
The strategic logic of this portfolio swap is clean: Info Edge reduces direct exposure to B2B commerce operations — a capital-intensive vertical with thin margins — while maintaining an indirect link to the kirana distribution opportunity through Udaan’s parent entity. The swap aligns with Info Edge’s broader pivot toward technology-led investments over operational businesses.
The Deeptech Macro: Why This Moment
Info Edge’s A88 Fund I commitment does not happen in isolation. It reflects a broader structural acceleration in India’s deeptech investment ecosystem that has been building momentum through 2025 and into 2026.
India Deeptech Investment Landscape — Macro Context
| Data Point | Detail | Relevance to A88 |
|---|---|---|
| New Funds with Deeptech Focus (2025) | ~21% of 90+ new funds launched in 2025 | A88 enters a growing but still underpenetrated category |
| Celesta Capital India Deeptech Fund | Rs 2,000 Cr target corpus — planned launch 2026 | Validates the thesis; signals institutional capital flowing in |
| Unicorn India + IIT Madras Fund | Rs 600 Cr fund; 25+ deeptech startups target | University-anchored dealflow; complements AI/ML pipeline |
| India AI Mission Funding | $1.2 Bn government committed for AI infrastructure | Government compute/infra de-risks the AI startup layer |
| India AIF Total Commitments | Rs 15.05 lakh crore (Sep 2025) | Deep LP pool available for quality fund managers |
| Info Edge Portfolio Value | ~Rs 48,000 Cr (Feb 2026) | Strong balance sheet and mark-to-market gains fund new deeptech bets |
| Agentic AI Platform Market | $4.35 Bn (2025) → $47.8 Bn (2030) — CAGR 61.53% | AI startup applications directly in A88’s target investment universe |
Source: StartupFeed.in Research. Inc42, Marqstats, SEBI AIF data, Crisil Intelligence. March 2026.
Of the 90+ new funds launched in 2025, approximately 21% had a primary focus on backing startups in the deeptech category — the highest concentration in any single thematic category. This reflects a structural shift in Indian venture capital from consumer internet and fintech toward science-and-engineering-intensive startups that build proprietary technology at the foundational level.
Info Edge’s A88 Fund I is correctly positioned at the frontier of this shift. By committing Rs 250 Cr with a 12-year horizon, the fund’s structure acknowledges that the best deeptech returns will not come from three-to-five-year exits but from patient capital that accompanies companies through the long grind from research to commercial scale.
Info Edge At A Glance: The Operator Turning Investor
Understanding why Info Edge’s deeptech bet is credible requires understanding what the company actually is. It is simultaneously one of India’s most profitable internet businesses and one of its most active early-stage investors — a combination that few listed technology companies anywhere in the world have managed.
Info Edge (India) Ltd — Corporate Profile
| Business Unit | Key Metric | AI / Deeptech Relevance |
|---|---|---|
| Naukri.com | India’s #1 job portal. Core revenue driver. | AI for job matching, recruiter intelligence, candidate scoring. Direct customer for AI portfolio startups. |
| 99acres.com | India’s top real estate portal | AI for property valuation, demand forecasting, lead scoring. Attentive.ai investment alignment. |
| Jeevansathi.com | Matrimony portal — top 3 India | AI-native matching, fraud detection, personalisation. |
| Shiksha.com | Education discovery and counselling | AI for career guidance, course recommendation. |
| Info Edge Ventures | Rs 2,300 Cr AUM across 3 funds | External LP model. Manages pooled capital for third-party investors. |
| Market Cap | ~Rs 67,000–69,500 Cr (Feb 2026) | Strong balance sheet: Rs 48,000 Cr portfolio value funds deeptech ambitions. |
| Stock Performance | Rs 991.65 (Mar 27, 2026)Down ~28–29% over 12 months | Stock weakness creates investor scrutiny pressure; A88 + B8 signal long-term value creation response. |
| Company Founded | 1995 (Sanjeev Bhikchandani) | 31-year-old internet company pivoting to deeptech investor. Naukri: 1997. Zomato investor: 2010. AI fund: 2026. |
Risks And Watch Points
- Fund concentration in own capital: A88 Fund I, like B8 Fund I before it, is anchored entirely by Info Edge’s own balance sheet. This concentration means the fund’s returns are more directly exposed to Info Edge’s own capital management discipline. External LP co-investment has not been confirmed publicly.
- Deeptech gestation timelines vs. shareholder patience: With a 12-year fund life and a stock that has lost 28–29% of its value over the past year, Info Edge must manage the tension between patient capital deployment and quarterly expectations from public market investors.
- Manager experience: While Smartweb will manage both A88 and B8, Info Edge’s subsidiary has limited public track record managing formally structured AIFs of this scale. Execution risk is material as the team scales.
- Ecosystem competition: Celesta Capital (Rs 2,000 Cr), Unicorn India + IIT Madras (Rs 600 Cr), and multiple new entrants are all pursuing India’s deeptech deal flow simultaneously. Premium valuations are likely for the best AI and robotics startups.
- TIPL/Trustroot position: The swap deal gives Info Edge exposure to Trustroot, which runs Udaan — a company that reported a Rs 1,055 Cr net loss on Rs 4,561 Cr revenue in FY25. The indirect exposure carries its own risk profile.
| STARTUPFEED INSIGHT In one week, Info Edge has done something quietly historic. A88 Fund I (deeptech, early-stage, ₹250 Cr) + B8 Fund I (growth-stage, ₹250 Cr) + Rs 15 Cr SIHL infusion + the Shopkirana exit = a complete portfolio restructuring statement. Info Edge is telling the market: we are done being a portfolio company that happens to invest. We are an investment platform that happens to operate portals. The deeptech thesis is the right one. Redstart’s portfolio — Unbox Robotics, The ePlane Company, BrainSight AI, CynLr — is already among the most technically ambitious early-stage portfolios held by any listed Indian company. A88 Fund I gives that thesis a formal, patient, 12-year home. The risk is that the stock market does not value this transformation in real time. Info Edge’s stock is down 28–29% over 12 months, and two Rs 250 Cr fund commitments in one month look like capital deployment acceleration rather than capital efficiency from a short-term P&L perspective. The company is making a 10-year bet in a 10-week news cycle. Verdict: The strategy is the right strategy for the right era. The execution — deal sourcing, portfolio governance, fund management credibility — is what the next 18 months will prove. |
