InfoEdge which runs site likes Naukri and Jeevansathi is withdrawing its entire investment of $4.5M from Ninety Nine Labels Private Limited, which runs 99labels.com, a fashion ecommerce portal. No information was given by the company about the reason for writing off the investment.
Last year, the company has invested Rs 5 Cr in September and 16 crore in May in 99Labels. Started as a flash sale site in 2010, 99labels deals in fashion apparels, lifestyle products, accessories, footwear, watches, jewellery, fragrances and home décor. It competes with rivals like fashionandyou and exclusively.in.
In November last year 99Labels launched 9rasa.com a a more conventional e-commerce site that specializes in traditional-style clothes, jewelery, and home decorations.
InfoEdge has been involved in lot of investments in upcoming internet start-ups. Last month, InfoEdge increased its investment in the online education player Meritnation.com to Rs 61.5 crore from Rs 31.5 crore. In the same month, Info Edge announced that it has invested an additional Rs 55 crore in restaurant guide service Zomato.
Info Edge (India) owns and manages some of the brands like 99acres.com, Shiksha.com apart from Quadrangle-an offline executive search firm and Naukri Gulf. Info Edge also owns Brijj.com, a professional networking site and Allcheckdeals.com, a real estate brokerage firm.
We have to wait an see what will be InfoEdge’s next move. Will it take down 99Labels and 9rasa? What do you think?