Daybreak Why Info Edge can’t love Zomato eternally
Jun 17, 2025
Explore Info Edge's strategic investments in Zomato and Policybazaar, referred to as breakout successes. Delve into the challenges Zomato faces, alongside the implications of its recent financial report. The discussion reveals Info Edge's commitment to long-term growth, resisting the temptation to sell shares despite market fluctuations. Key insights include the evolving digital landscape and the influence of emerging technologies like AI on these companies' futures.
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InfoEdge's Long-Term Strategy
- InfoEdge sees itself as a long-term strategic investor, not an opportunistic trader.
- This philosophy explains why it hasn't sold shares of Zomato (rebranded Eternal) or Policybazaar since their IPOs.
Zomato Faces Profit Challenges
- Zomato's recent financial results show an 80% profit plunge year-over-year due to fierce competition.
- Even leading players like Eternal Own Blinkit operate at losses, reflecting the brutal industry's battleground nature.
Focus vs Diversification Debate
- Analysts criticize InfoEdge for spreading investments too thin instead of focusing on core business Naukri.
- Naukri generates three-quarters of revenue but faces uncertainty due to AI's disruptive potential in hiring.