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How 99Acres plans to use the $120 million it has raised

There was a sense that Info Edge* had become a one trick pony, and its businesses was restricted to primarily the business that its stock ticker symbol is named after: NAUKRI. That recruitment business still accounts for a majority (around 72%) of its revenues, and in the past, we've questioned them about why they're still persisting with Jeevansathi, which has been at number three in the matrimonial site segment for a few years now. Someone even said to me a few months ago that growth for Info Edge is only going to come from its investments, which include Policybazaar, Zomato, MyDala, MeritNation, among others. Info Edge, it appears, has other ideas. Among its businesses, 99Acres is one it has appeared most bullish on (if you go by the concalls), and we see the the recent fund raising of Rs 750 crore (around $120 million) as a strong statement of intent that the company isn't willing to let competition take away marketshare. Both 99Acres and MagicBricks.com (owned by the Times of India group) claim to be leaders in the online real estate listings space (and disagree on who exactly leads, based of different interpretation of traffic data). Those challenging their joint-leadership include - CommonFloor, which has raised around $40 million this year, in two rounds of funding: one, two. - Housing.com: which raised around $18 million a couple of months ago. Now that the funds have been raised, Info Edge has issued a communication to its shareholders detailing how it intends to use these funds (pdf): 1. Hiring: - Senior Hires:…

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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