Info Edge invests afresh in fashion retail site 99labels

Info Edge (India) Ltd, which runs the recruitment site Naukri.com and matrimonial site Jeevansathi and real estate portal 99acres.com, has invested Rs 5 crore ($0.9 million) in Ninety Nine Labels Private Limited, which runs online private sales portal 99labels.com, according to a stock market disclosure.

The fresh investment through fully convertible cumulative redeemable unsecured debentures takes Info Edge’s total investment in the company to Rs 28.5 crore (around $4.5 million). In May, 2011, Info Edge had invested $3.5 million in the company.

99labels.com is a members-only, flash sale site offering luxury brands in fashion apparel, lifestyle products, accessories, footwear, watches, jewellery, fragrances and home décor. It offers up to 90 per cent discounts on branded merchandise.

The new investment comes within weeks of the company investing $6.5 million (Rs 35 crore) in Bangalore-based online photography company Canvera Digital Technologies Pvt Ltd.

Info Edge’s witnessed 22.3 per cent growth in net revenue for the quarter ended June 30, 2012, to Rs 105.9 crore over Q1 of last year and saw standalone net profit rise 24 per cent to Rs 31.78 crore in the same period. However, the year-on-year growth was partly doused by almost flat net revenue in Q1, compared to the fourth quarter ended in March 2012. Sequential net profit also declined 20.3 per cent as flat topline was accompanied by higher expenses and lower ‘other income’.

(Edited by Prem Udayabhanu)

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