Internet company Info Edge has increased its majority stake in Canvera, an online photography services start-up, from 57% to 62.22%. The investment is to the tune of ₹8.6 crore, according to a stock-exchange filing with the BSE.
The Bengaluru-based company is a step-down subsidiary of Info Edge, thus making it a related party. The transaction was declared to be at “arm’s length”, with Info Edge having no interest in the investment.
It bought 7,77,419 preferential shares in Canvera at ₹111.48 a share. The overall stake of Info Edge will be on a “fully converted and diluted” basis.
Founded in 2008 by IIT Mumbai alums Dhiraj Kacker and Peeyush Rai as an online photo-book company, the company entered the e-commerce domain in 2012. However, both founders have now quit the company. While Kacker is the GM of Photos at Amazon, Rai is the vice president of engineering at San Francisco-based online security firm Vera. Ranjit Yadav, the former president of the passenger vehicle business at Tata Motors, was appointed as the CEO in 2015. He is now their managing director.
In 2008, it raised an undisclosed amount from Footprint Ventures, Draper Fisher Jurvetson, Mumbai Angels, and a couple of angle investors.
However, Info Edge has repeatedly invested small amounts in the company since 2012.
- Initially, Canvera received a funding of ₹35 crores in 2012. Two years later, it invested ₹4.5 crores, consolidating their share to 26%. An injection of ₹1.5 crore allowed for an exit for some investors in 2014, while increasing its investment to ₹43.5 crores. This brought their stake in the company to 27%.
- Info Edge then increased its share to 32%, investing an additional ₹13.5 crores. Later in October, it again invested ₹10 crores, with the share percentage reaching 36%.
- In 2016, Info Edge received at majority stake at 57%, after investing ₹17.3 crores. This led Canvera to have a subsidiary status from being an “associate” of Info Edge.
Canvera offers products like photo books, photo albums, posters, photo prints and calendars among others. Besides this, it provides various solutions to professional photographers to showcase their photo portfolio. This includes image hosting, personalized website with themes & analytics, e-commerce integration, and social sharing among others.
Info Edge operates a handful of websites, including 99acres, Jeevansathi, and Naukri.com. It has earlier invested in Zomato and Meritnation.