Sanjeev Bikhchandani is in no hurry to sell his stake in Zomato and Policybazaar

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Sanjeev Bikhchandani

Sanjeev Bikhchandani – There is a possibility that the deployment of the proceeds from the sale of participation in Zomato and Policybazaar could lead to suboptimal investments Bikhchandani. My point of view is that if a business has legs, why not hang on to it for a while? However, nothing is set in stone and ultimately the board decides on these matters: Bikhchandani.

Info Edge currently holds a 15.3% stake in Zomato, while it owns a 13.3% stake in Policybazaar

Read Also : Zomato Halts Operations Of Restaurant Funding Platform Zomato Wings

Zomato And Policybazaar

Info Edge founder and star investor Sanjeev Bikhchandani said on Friday Aug 12 that his company is in no rush to sell its stake in food tech major Zomato and fintech player Policybazaar. He added that the company’s board would make a final decision on the matter.

Sanjeev Bikhchandani

Speaking during Info Edge earnings call, Sanjeev Bikhchandani said there is a possibility that the spread of proceeds from the sale of the Zomato and Policybazaar stake could lead to suboptimal investments. (Zomato And Policybazaar)

Normally, a fund has to write all of its first checks three years before the fund closes. Suppose we were to deploy INR 10,000 Cr from both exits. That would mean investing in 300 early stage companies with an average check size of INR 10 Cr, Bikhchandani said.

He also reiterated that the company’s board of directors would attend to matters related to the sale of shares in Zomato and Policybazaar.

If you sell the stake, you only have 1X of the money. Whereas if you keep the bet, the money could be multiplied in the future. My point of view is that if a business has legs, why not hang on to it for a while? However, nothing is set in stone and ultimately the board decides on these matters, Sanjeev Bikhchandani noted.

Info Edge currently holds a 15.3% stake in Zomato, while it owns a 13.3% stake in Policybazaar.

Bikhchandani remarks come at a time when the major food technology company has been under intense liquidation pressure due to market volatility and below average financial performance. Matters intensified last month after the expiration of Zomato’s investor lock in period ahead of the IPO, which saw big names like Uber and Moore dump their shares in the Gurugram based startup.

Zomato

Zomato is also on the hot seat over its controversial acquisition of fast-trade startup Blinkit in a deal for INR 4.4447 Cr. Concerns over Blinkit’s profitability and its heavy cash hungry have dragged Zomato shares lower, even as the foodtech company has issued multiple clarifications to placate investors. (Zomato And Policybazaar)

Sanjeev Bikhchandani also addressed concerns about publicly traded new-age tech companies allocating a large number of employee stock ownership plans ESOPs to founders. I think it’s important to look at each case separately and see a few things. First, was there disclosure of the ESOPs prior to the IPO? The second thing is that if the founders have been forced to dilute their shareholding too much, they will have enough incentive for 5-7 years to run the ship, said the founder of Info Edge.

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