Info Edge (India) Ltd has reconfigured its investment portfolio, exiting Shopkirana via a share-swap with Trustroot Internet Pvt Ltd and committing up to ₹250 crore to A88 Fund I, a deeptech-focused vehicle. The moves underscore the company’s pivot towards technology-led, high-growth opportunities while retaining indirect exposure to the B2B commerce space.
Share swap with Trustroot gives indirect stake in Udaan
Info Edge transferred its entire 26.14% holding in Shopkirana to Trustroot, the parent of B2B marketplace Udaan, in a non-cash share-swap arrangement. In return, Info Edge received preference shares in Trustroot, which convert to a little over 2% equity in Udaan’s parent entity.
The structure preserves Info Edge’s indirect link to the kirana and FMCG supply chain through Udaan, and the company has also provided additional capital to Trustroot, signalling continued confidence in Udaan’s long-term prospects. As a result of the transaction, Shopkirana will cease to be an associate of Info Edge and is expected to be integrated into Udaan’s supply-chain and distribution operations.
₹250 crore allocation to A88 Fund I
Separately, Info Edge’s board approved an investment of up to ₹250 crore in A88 Fund I, a Category II Alternative Investment Fund managed by its subsidiary Smartweb Internet Services. The fund will target early-stage startups in deeptech domains, with particular emphasis on artificial intelligence and machine learning applications.
The allocation is intended to back scalable, innovation-driven companies that can deliver long-term value, reflecting Info Edge’s move to prioritise technology investments over capital-intensive operational bets.
Why this matters
The dual actions mark a strategic reorientation for Info Edge from traditional, capital-heavy ventures in B2B retail toward high-impact technology investments. Info Edge, which has a track record of early backing for firms such as Zomato and Policybazaar, is aligning its capital deployment with sectors that promise higher potential returns from AI and deeptech innovation.
This shift also echoes a wider investor trend in India’s startup ecosystem, where venture and strategic capital are increasingly flowing into AI-led and deeptech startups as investors seek durable competitive advantages and scalable business models.
