Teaching Note: To hold or to harvest? Info Edge’s exit decision at the Zomato IPO

The case examines the exit decision of a corporate venture investor at the moment its most successful bet finally becomes liquid. Info Edge (India) Ltd seeded Zomato in 2010 and, over a decade, deployed roughly ₹484 crore (₹1 crore = ₹10 million) to build a stake worth nearly ₹9,455 crore at the company’s July 2021 IPO. Importantly, it had already recovered about ₹328 crore by selling part of the stake to Alipay in 2018, so by the IPO it had recouped most of its outlay. On the eve of the offer it nonetheless halved its planned share sale and realised...