Why Info Edge can’t love Zomato eternally

In a recent, 10-page note recapping its investing journey, Info Edge (India) founder Sanjeev Bikhchandani proudly, and justifiably, called Zomato and Policybazaar “breakout successes”, “winners”, and “outliers”.

A few days earlier, Zomato, now renamed Eternal, had released its sobering financials for the three months ended March. 

So what’s Infoedge doing about it? Apart from its own businesses – spanning recruitment, real estate, matrimony and education – it owns roughly 12.5% each of Eternal and PB Fintech, the parent of insurance marketplace Policybazaar, and has not sold a single share in either since they started trading.

The reason is simple and it was stated in its shareholders letter. It wants to be strategic and not opportunistic about existing businesses because it sees itself as a long term investor and not some trader. 

The thing is, not everyone is on the same page. 

Tune in.

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