InfoEdge AI products reach Rs 240 crore annualised rate

InfoEdge said AI-first products and services generated about Rs 60 crore of revenue in Q2, equivalent to a Rs 240 crore annualised rate. Management said AI-Rex scaled sharply during Q2, while Talent Pulse and jobseeker services contributed earlier revenue, and it plans to prioritise customer adoption and renewals for roughly 24 months.

What is InfoEdge's Rs 240 crore AI annualised rate?

InfoEdge's Rs 240 crore annualised rate is based on approximately Rs 60 crore of Q2 revenue from AI-first products and services multiplied by four. Management defined the category as products and services that could not have been launched without artificial intelligence, including recruiter offerings AI-Rex and Talent Pulse and AI-enabled services for jobseekers.

The Q2 figure is an annualisation of one quarter, not a disclosed full-year forecast or contracted revenue target. InfoEdge said there was some AI-related revenue in the previous year, particularly from Talent Pulse and jobseeker services, but it had not separately reported that revenue. AI-Rex generated only a small amount in Q1 before scaling sharply in Q2.

Management described the revenue as largely additive rather than a replacement for existing recruitment revenue. Sanjeev Bikhchandani said it was not cannibalising existing revenue, while Hitesh Oberoi noted that the comparison includes a non-zero earlier base from Talent Pulse and jobseeker services. InfoEdge separately uses AI in functions such as marketing, pricing, lead qualification, telecalling and product development, but includes only separately sold products in the Rs 240 crore figure.

How does InfoEdge price AI-Rex and Talent Pulse?

InfoEdge gives AI-Rex and Talent Pulse separate rate cards, although it often sells them within negotiated multi-product packages. AI-Rex is priced at Rs 3,500 per mandate for companies and Rs 2,500 per mandate for consultants. The Q2 expansion to consultants added a customer group that had not been included in the Q1 rollout.

A client can buy AI-Rex alongside Resdex, job listings, AmbitionBox and Talent Pulse, with the overall commercial package subject to negotiation. Management said this structure means AI products have identifiable rate cards but may be bundled in a broader customer order. Talent Pulse also has its own rate card, according to management.

Talent Pulse had 750 company users at the time of the call. Management said the product supports talent planning and compensation and benefits teams through data on salaries, talent and skills. AI-Rex is aimed at recruiters, and InfoEdge said Naukri has 150,000 customers, including at least 40,000 larger annual-renewal clients that buy higher-value products.

Why is InfoEdge focusing on AI-Rex adoption before margins?

InfoEdge is focusing on AI-Rex penetration, customer use, renewals and upgrades over the next roughly 24 months rather than setting a steady-state margin target. Of at least 40,000 large Naukri accounts that renew annually, about 2,000 were trying AI-Rex. Management expects clients to begin with smaller purchases and increase spending if the product delivers better hiring outcomes.

Management said AI offerings have high gross margins because incremental costs should be limited once the technology is developed and capital expenditure is completed. It did not provide a future margin range. Oberoi said the outcome would depend on InfoEdge's eventual share of hiring, using a move from 40% to 60% of people hired through Naukri as a hypothetical illustration rather than a forecast.

InfoEdge reported an early spending difference among clients that bought AI products. In the previous quarter, such clients paid on average at least 10% to 15% more than clients that did not buy AI offerings, according to management. The company compared the approach with Resdex, which it initially offered free around 25 years ago before introducing pricing and discounts; management said Resdex now contributes 70% to 80% of Naukri revenue.

How is InfoEdge using AI across recruitment segments?

InfoEdge is using AI products for both recruiters and jobseekers, while extending its recruitment strategy across premium, mid-market and value segments. On the jobseeker side, it has introduced AI-enabled interview preparation and a jobseeker agent called Neo. Paid-product penetration among Naukri monthly active users increased from about 1.5% to 2.6% to 2.7% over the last five or six quarters.

Management said the 2.7% paid-product penetration leaves further users who could buy AI services and other paid offerings, without requiring advertising specifically to sell those services. It may still advertise to increase jobseeker traffic and platform share. Management also said AI enables cheaper pricing for some jobseeker products and supports new services that were not previously possible.

In premium recruitment, Naukri premium jobseeker views grew 25% year on year in Q2, supporting products including iimjobs, Hirist and PremiumX. In the value segment, management said Job Hai is monetising and growing 80% to 90% year on year, helped by demand from gig work, delivery services, small and medium enterprises and larger employers. For the mid-market, InfoEdge sees AI-Rex as a tool to increase the proportion of hiring completed through Naukri.

The AI strategy operates alongside the company's wider marketplace portfolio. Management said core billings growth was running at about 14% to 15%, with quarter-end renewal timing affecting individual quarters and revenue recognised over 12 months for mostly annual deals. Separately, 99acres grew 21% in the previous quarter and generated more than Rs 20 crore of cash, showing the role of businesses beyond recruitment in InfoEdge's growth plans.

Conclusion

InfoEdge has quantified its AI-first monetisation at approximately Rs 60 crore of Q2 revenue and a Rs 240 crore annualised rate. AI-Rex accounted for much of the recent acceleration after its Q2 scale-up, while Talent Pulse and jobseeker services supplied an earlier revenue base. The company is retaining separate AI price points while using broader package negotiations for recruitment customers.

The next measures to watch are adoption beyond about 2,000 AI-Rex trial accounts, customer renewals and upgrades during the stated roughly 24-month penetration period, and paid-product penetration above the current 2.6% to 2.7% of Naukri monthly active users. Execution will also enter a leadership transition when Bikhchandani becomes Executive Vice Chairman, Managing Director and Group Chief Executive Officer from December 3, while management has not set a steady-state AI margin target.