Info Edge (India) Ltd has committed ₹250 crore to A88 Fund I, a deeptech-focused alternative investment fund, and simultaneously agreed to exit its 26.14% stake in retail-tech firm Shopkirana via a share-swap. The moves mark a strategic pivot towards early-stage artificial intelligence, machine learning and advanced digital infrastructure ventures.
Investment in A88 Fund I
Info Edge will subscribe to A88 Fund I, a Securities and Exchange Board of India–registered alternative investment vehicle that targets early-stage startups in deeptech domains. The company and its subsidiaries, including Smartweb Internet Services Ltd, will route the investment and Smartweb will take responsibility for managing the fund.
With an expected lifecycle of about 12 years, A88 Fund I is structured to support companies with longer development horizons and capital-intensive research needs. The allocation reflects Info Edge’s intent to back higher-risk, high-innovation opportunities that could yield significant long-term returns.
The decision builds on Info Edge’s history of early-stage investments and portfolio development — notably its successful backing of companies such as Policybazaar — and signals a deliberate effort to cultivate deeptech capabilities amid growing domestic and global interest in AI and related technologies.
Exit from Shopkirana
Concurrently, Info Edge will exit its entire holding in Shopkirana through a share-swap transaction with Trustroot Internet, valuing its stake at roughly $33 million. Under the terms, Info Edge’s subsidiary Startup Investments (Holding) Limited will receive preference shares in Trustroot, translating into a minority stake of just over 2% in the acquiring entity.
In addition to the share-swap, the subsidiary will make a further investment of $1.72 million to marginally increase its holding. The parties expect the transaction to complete by June 2026, after which Shopkirana will no longer be an associate of Info Edge.
Strategic Rationale and Market Context
The twin moves reflect a broader strategic shift at Info Edge away from relatively mature retail-tech investments toward sectors driven by deep research and long-term innovation cycles. As capital flows into AI and deeptech accelerate globally, the company appears intent on repositioning its portfolio to capture early exposure to emerging technology leaders.
By recycling capital from an established portfolio company and redeploying it into a long-dated fund vehicle, Info Edge aims to balance near-term portfolio optimisation with the potential for outsized returns from breakthrough deeptech startups—an approach increasingly pursued by Indian investors seeking to foster a domestic innovation ecosystem.
