Info Edge-owned Jeevansathi and 99acres could turn profitable this year
What's the story
Info Edge, a leading Indian internet company, is optimistic about its two major platforms — Jeevansathi and 99acres — reaching breakeven by the end of this fiscal year (FY). In contrast to flagship platform Naukri, which stood out far above its competitors, Jeevansathi and 99Acres have been struggling to gain an edge over their rivals. Chintan Thakkar, the Chief Financial Officer (CFO) of Info Edge, expressed confidence in the efficient growth and reduced cash burn of these platforms.
Market leadership
Naukri dominates recruitment sector amid IT industry recovery
Thakkar highlighted that 99acres experienced a 10% growth last quarter while Jeevansathi saw a significant rise of 35%. Meanwhile, Naukri, continues to lead the recruitment sector with a 70% market share. The Bank of America (BofA) Securities has recently upgraded its stance on Info Edge stock from "underperform" to "buy," setting a price target of ₹9,000 per share. Thakkar pointed out that Naukri's growth is closely linked to the IT sector, which stagnated late last year but is now recovering.
Investment approach
Investment strategy and financial standing
Thakkar revealed that Info Edge was an early investor in Zomato and PolicyBazaar, and remains the largest shareholder in both companies. The company's approach has been to invest early, increase its stake in promising ventures, and hold these investments over the long term. This strategy has proven successful for Info Edge which currently holds ₹4,500 crore in cash reserves. Over the past year, shares of the company have surged by 92%, leading to a market capitalization of ₹1,06,031 crore.