Info Edge invests Rs 135.4 crore to take majority stake in Coding Ninjas

Info Edge (India), the Noida-based internet company that runs the Naukri.com jobs portal, told stock exchanges on October 3, 2022 that it would invest about Rs 135.4 crore in Sunrise Mentors, the operator of coding education platform Coding Ninjas. The transaction raised Info Edge's holding from about 26 percent to 51 percent on a fully converted and diluted basis, making Coding Ninjas a subsidiary of the company. The board approved the deal before the filing, which was made late on a Monday.

According to Business Standard, the investment was split between newly issued shares and shares bought from existing holders, covering 22,836 compulsorily convertible preference shares and 27,089 equity shares with a face value of Rs 10 each. The deal was expected to close within 30 days, subject to customary conditions. YourStory reported that the transaction valued Coding Ninjas at approximately Rs 541 crore.

Founded in 2016 by Ankush Singla, Kannu Mittal and Dhawal Parate, Delhi-based Coding Ninjas teaches programming and related courses through its online platform. It reported turnover of Rs 28.9 crore in fiscal 2022, up 45.2 percent from Rs 19.9 crore a year earlier. Info Edge said the larger stake would help it explore and maximize business synergies between Naukri and Coding Ninjas, linking a recruitment platform with a provider of technical skills training. Business Standard reported that Info Edge shares rose about 1 percent in trading on October 6.

The move was part of a series of education investments by Info Edge in 2022. A month earlier it had put about Rs 80 crore into Metis Eduventures, which runs vernacular test preparation platform Adda247, taking its stake to 23.01 percent. Info Edge also operates the education portal Shiksha.com, and its strategic investment portfolio at the time included companies such as Zomato and PolicyBazaar. Adda247 serves students in smaller cities preparing for government jobs, entrance exams and school curricula.