Info Edge Acquires Stake in Legitquest, Strengthening Legal Technology Focus
NSE: NAUKRI:Rs.7949(+3.73%)
Info Edge is India’s premier online classified company with a portfolio of brands. It owns various brands in different fields like naukri.com (online recruitment), 99acres.com (online real estate), jeevansathi.com (online matrimonial) as well as shiksha.com (online education information services).
Info Edge (India) Limited, through its wholly-owned subsidiary Startup Investments (Holding) Ltd. (SIHL), is set to acquire a stake in LQ Global Services Private Limited (“Legitquest”).
Transaction Details:
- SIHL will invest approximately Rs. 4 Crores in Legitquest in two equal tranches.
- The first tranche of Rs. 2 Crores will be disbursed within 30 days.
- The second tranche of Rs. 2 Crores will be disbursed within 12 months, subject to certain conditions.
- The investment will be made through the subscription of Convertible Notes.
- After the first tranche, SIHL’s shareholding in Legitquest will be 25.65%, and after the second tranche, it will increase to 27.98%.
- The actual conversion of the notes into shares will depend on Legitquest’s next funding round and other factors.
About Legitquest:
- Legitquest is a SaaS platform in the legal technology (Legal-Tech) sector.
- It uses Machine Learning, advanced search algorithms, and data analytics to simplify legal practice for its users.
- The company is managed by a team of attorneys, engineers, and designers.
- Legitquest was founded on January 18, 2017, and operates in India.
- Its turnover for the last three years (in crores of rupees) is:
- 2023-24: 5.85
- 2022-23: 2.22
- 2021-22: 2.31
Rationale for the Acquisition:
- This investment aligns with Info Edge’s strategy to create long-term value through external financial investments.
- Legitquest is simultaneously raising funds from other investors.