Info Edge: Decoding Ideas Since 1995 Hitesh Oberoi, MD & CEO, Info Edge, had been leading the mandate for the company since 2000. Speaking at the Entrepreneur 2023 Summit in New Delhi, he shared insights into how investments in technology and innovations helped the company navigate challenging times

In 1995, when the general public in India hardly had any smooth access to the Internet, Sanjeev Bikhchandani, founded an Internet company–Info Edge. Internet in India began in 1986 and was available only to the educational and research community; the general public access to it began on 15 August 1995. Soon, the use of the Internet started to find consonance with glory and privilege. As Indians started to find joy in the virtual world, Info Edge became an early mover in the Internet business, expanding into other verticals such as matrimony (Jeevansathi), real estate (99acres) and education (Shiksha). Today, almost 25 years later, Naukri.com and 99acres are one of Info Edge's top performing businesses.

Hitesh Oberoi, MD & CEO, Info Edge, had been leading the mandate for the company since 2000. Speaking at the Entrepreneur 2023 Summit in New Delhi, he shared insights into the nuances of businesses during challenging times. Naukri.com, had hit a rough patch during the global financial crisis in 2008. "There was a point in time where we were doubling revenue every year, and we were very profitable, and suddenly we were hit by the global financial crisis in 2008. Overnight, we went from growing at 40, 50 per cent per annum to declining at 25 per cent per annum," he said, adding that the company recovered within a few quarters. Fast forward, 2020, the world had another crisis: COVID-19. Eventually, the company navigated all the hurdles and today, Naukri.com generates a cash EBITDA of 300 crore a quarter on an average and is one of India's very few profitable Internet businesses.

In a dynamic and volatile global situation, it's the entrepreneur's duty to lead from the front and constantly innovate that would keep the company ahead of competition. "It's the entrepreneur's ability to manage challenges of scale and innovate that helps the company thrive in the long-run."

The company aims to deliver superior value through enhanced offerings on the Internet and other platforms. "We will do this by preserving our entrepreneurial spirit and leveraging our financial strength and expertise in building brands, communities, product and technology," added Oberoi.

The early movers of innovation

Oberoi is aware of the need to ride the wave of innovation and newer technologies that are disrupting a range of traditional industries. Over the years, Info Edge has leveraged its advantage of over two decades' worth of data, artificial intelligence, data analytics and machine learning to drive change through improved user experiences and new products.

During the pandemic, the business of 99acres suffered for three quarters, "There was a point in time when 99acres business was down 70 per cent. However, things improved in 2021 and businesses were back on track."

So, what led to the growth? "Innovation! Cultivating an innovative mindset should be any organization's top priority. Over time, if companies do not adapt to the use of new technologies and leverage it, they will be left behind. We have been constantly investing in technology and creating a culture which motivates people to stay with us."

Every sector is being disrupted by a technology-first company, from quantitative trading, to tech driven, data first, digital companies, the world is going through a techade. "The world is run by tech companies and over the next 20 years tech will be the dominant factor. However, not all is lost for the non-tech companies. Non-tech companies that have been able to adapt to the changing world, have been able to survive."

Today, 50 per cent of the jobs on naukri.com are for techies. Even non-IT companies, such as banks, financial services, accounting companies, are hiring IT folks. "That's how fast things are changing on the ground."

From being a startup to helping startups

What started as a startup in 1995 has successfully transitioned into a company, but the relentless spirit to help the startup ecosystem has led Info Edge to invest in 65 startups till date. Info Edge was one of the early investors in Zomato and Policy Bazaar. "In the tech/Internet space, companies should be prepared to foresee disruption by small startups and should be able to invest in them," he said.

"Innovation also means a massive wealth creation opportunity. If India continues to grow at 5 per cent per annum, the Indian stock market cap will be $10 to $15 trillion in the next few years. This will lead to tons of new startups, which will get listed and when investors see the success of the Indian startup scene, more investment will follow."

Info Edge have been partnering with passionate entrepreneurs across sectors such as food-tech, insure-tech, Web 3.0, health-tech, fin-tech, ed-tech, agri-tech, and retail-tech among others. "Based on our experience and learnings from these businesses, we invest in tech-enabled ventures and strive to be a long-term partner for the entrepreneurs. We are sector agnostic and continue to look for opportunities in areas wherein the Internet is changing the old way of doing things," Oberoi explained.

Info Edge (India) reported a standalone net profit of INR 200 crore for the first quarter of FY24, registering a growth of 34.7 per cent from INR 148 crore in the same quarter of previous fiscal. "The Naukri business is facing headwinds in IT Hiring, however the Non IT Hiring market continues to look good. Growth in 99acres continues to be strong. In Jeevansathi our Freemium strategy has helped us bring down our marketing spend and cut burn over the last few quarters," he added.