Info Edge to Acquire Remaining Stake in Coding Ninjas for ₹39.91 Crore; Approves Additional ₹180 Crore Commitment to B8 Fund I

What Happened ?

Acquisition of coding ninjas:

Transaction Structure:

• Acquisition of 74,741 equity shares
• Cash consideration of approximately ₹39.91 crore
• Remaining founder stake to be acquired
• Completion targeted within 45 days, subject to customary conditions
• Payment schedule:
  • 25% at closing
  • Remaining 75% in three equal tranches on:
    • 31 March 2027
    • 31 March 2028
    • 31 March 2029

Strategic Rationale:

The acquisition is expected to:

• Maximise synergies between Naukri and Coding Ninjas.
• Improve growth and profitability of the Coding Ninjas platform.
• Support development of mini AI learning courses for Naukri users.
• Enable tighter operational integration after achieving full ownership.

Coding Ninjas Business Profile:

• Incorporated: 18 May 2016
• Business: Online education and e-learning platform
• Brand: Coding Ninjas
• Presence: India

Revenue History:

• FY26: ₹97.43 crore
• FY25: ₹67.15 crore
• FY24: ₹53.31 crore

Additional Commitment to B8 Fund I:

Transaction Structure:

• The Board approved an additional commitment of up to ₹180 crore in B8 Fund I, either directly or through wholly owned subsidiaries.
  
• The investment is in addition to the ₹250 crore commitment announced earlier, taking the total approved commitment to ₹430 crore.

Investment Objective:

B8 Fund I is designed to:

• Invest in growth-stage technology-enabled businesses.
• Support the Indian entrepreneurial ecosystem.
• Generate long-term capital appreciation for contributors.

Fund Characteristics

• Category II Alternative Investment Fund
• Sponsored through Smartweb Internet Services Ltd.
• Scheme life:
  • Initial tenure: 8 years
  • Extendable by up to 2 additional years

Investor Relevance:

The two Board decisions indicate parallel execution of Info Edge’s capital allocation strategy:

• Complete ownership of an existing strategic portfolio company.
• Continued deployment of capital into high-growth private technology businesses through its investment platform.
• Strong focus on long-term ecosystem building alongside core operating businesses.  

Risk Analysis

Summary:

• The Coding Ninjas acquisition remains subject to customary closing conditions under the Share Purchase Agreement. Coding Ninjas continues to report losses despite revenue growth, making successful operational integration and profitability improvement important execution priorities.

Key Risks:

• Completion subject to transaction conditions.
• Coding Ninjas remains loss-making.
• Integration risk following full ownership.
• Execution risk in AI learning initiatives.
• Venture investments through B8 Fund I carry inherent private-market investment risks.
• Capital deployment depends on investment opportunities over the fund’s life.

Worst Case:

• If Coding Ninjas fails to improve profitability or expected synergies do not materialise, the acquisition may deliver lower-than-anticipated returns. Similarly, returns from B8 Fund I depend on the long-term performance of portfolio companies.

Risk Level: Medium

Company Commentary

• The company stated that acquiring the remaining stake in Coding Ninjas aligns with its overall investment strategy and is expected to unlock business synergies between Naukri and Coding Ninjas while enabling AI-focused learning offerings.
  
• It also stated that the additional commitment to B8 Fund I is consistent with its strategy of making long-term external financial investments focused on value creation.