Listed pure-play internet player Info Edge has acquired a majority stake in Delhi-based online learning platform Coding Ninjas for a cash consideration of Rs 135.4 crore ($16.6 million).
The investment takes Naukri parent’s stake in the startup to 51% from 26% earlier, it said in an exchange filing with the BSE.
"As a part of the all-cash deal, Info Edge will acquire 22,836 Compulsorily Convertible Preference Shares (CCPS) and 27,089 equity shares via a mix of primary and secondary purchase of shares," the statement further said, adding, that this investment would the company to explore business synergies between the two platforms - Naukri and Coding Ninjas.
Coding Ninjas was founded by Ankush Singla, Kannu Mittal and Dhawal Parate in 2016, according to its website. It offers courses in programming and data sciences that help students in improving their job prospects.
Once the deal, that values Coding Ninjas at about Rs 541.1 crore, is completed, Sunrise Mentors Pvt. Ltd, which operates the edtech startup, will become a subsidiary of Info Edge. Info Edge had previously invested Rs 37.10 crore ($5.2 million) in the startup in 2020 for a 25% stake.
"Jobseekers looking to upskill and reskill, want a clear attribution before spending significant sums of money for such education. This need for attribution is giving rise to new business models such as income sharing agreements (ISA) or pay after placements (PAP,” Info Edge had said in 2020.
According to the statement, Info Edge also has an option to increase its stake in the startup in the future, if it fulfils certain conditions and performance milestones.
Coding Ninjas reported a turnover of Rs 28.9 crore in FY22, up 45 % from the previous year.
Last month, Info Edge had invested about Rs 80 crore in vernacular test preparation platform Adda 247, its fourth investment in the company since 2019.
Earlier, the company, through its subsidiary Allcheckdeals, announced an investment of Rs 90 crore in 4B Networks Pvt Ltd-operated Broker Network.