Sanjeev Bikhchandani’s Investment Philosophy Delivers 743% Return on Investment

Sanjeev Bikhchandani, the founder of Info Edge (India) Limited, has achieved a remarkable 743% return on investment by deploying approximately Rs 4,900 crore across 135 startups since 2007. The company’s consumer technology and consumer AI portfolio has delivered the most dramatic outcomes, with a 13.5x gross multiple and a ~34% gross IRR.

Sanjeev Bikhchandani’s Investment Philosophy

Bikhchandani’s investment philosophy is centered around entering before consensus forms, holding longer than most investors, and focusing on early-stage companies that have the potential to become great. He emphasizes the importance of discipline in entry valuations, stating that expensive early rounds can hinder a company’s ability to raise capital during difficult periods.

The company deliberately keeps fund corpuses limited, deploys capital sustainably, and manages some of the longest-duration funds in the country. Bikhchandani also regards intermediate IRRs with some degree of scepticism and takes them with a generous pinch of salt.

Key Principles of Bikhchandani’s Investment Strategy

Entering before consensus forms
Holding longer than most investors
Focusing on early-stage companies
Discipline in entry valuations
Keeping fund corpuses limited
Deploying capital sustainably

Market Impact and Details

Info Edge’s consumer technology and consumer AI portfolio has delivered a 13.5x gross multiple and a ~34% gross IRR. The AI portfolio, built since 2020 across 28 companies, has returned a 2.1x gross multiple on Rs 614 crore deployed, now valued at Rs 1,268 crore, at a ~31% gross IRR.

The deeptech book, which is younger, riskier, and backed almost entirely at the IP and R&D stage, has deployed Rs 455 crore across 30 companies, now marked at Rs 559 crore, a 1.2x multiple and ~15% gross IRR.

The combined gross IRR of the alternative investment funds managed by Info Edge stands at ~22%. The company has also received government recognition for its AI and deeptech investments, with Gnani.ai, ePlane, and Manastu Space receiving government allocations and recognition.

Rs 2,755 crore deployed across 45 consumer-tech and consumer-AI companies
Rs 614 crore deployed across 28 AI companies
Rs 455 crore deployed across 30 deeptech companies

Key Takeaways

Sanjeev Bikhchandani’s investment philosophy has achieved a remarkable 743% return on investment.
The company’s consumer technology and consumer AI portfolio has delivered a 13.5x gross multiple and a ~34% gross IRR.
Info Edge’s alternative investment funds have a combined gross IRR of ~22%.

FAQs

What is Sanjeev Bikhchandani’s investment philosophy?

What is the significance of Info Edge’s AI and deeptech investments?

The company’s AI and deeptech investments have delivered significant returns, with a 2.1x gross multiple on Rs 614 crore deployed across 28 AI companies and a 1.2x multiple on Rs 455 crore deployed across 30 deeptech companies.

What government recognition has Info Edge received for its AI and deeptech investments?

Gnani.ai, ePlane, and Manastu Space have received government allocations and recognition for their AI and deeptech investments.

Conclusion

Sanjeev Bikhchandani’s investment philosophy has achieved a remarkable 743% return on investment, driven by the company’s focus on early-stage companies and its ability to deploy capital sustainably. The company’s AI and deeptech investments have also delivered significant returns, with a 2.1x gross multiple on Rs 614 crore deployed across 28 AI companies and a 1.2x multiple on Rs 455 crore deployed across 30 deeptech companies. As the company continues to invest in these areas, it is likely to remain a leader in the Indian venture capital space.

Investors looking to replicate Bikhchandani’s success should focus on early-stage companies with strong potential for growth, and be prepared to hold onto their investments for the long term. With its robust cash flows and ability to deploy capital sustainably, Info Edge is well-positioned to continue delivering strong returns for its investors.