Info Edge had an exposure of nearly INR 520 Cr in 4B Networks; the listed internet giant has fully impaired the entirety of the same
The move propelled Info Edge’s total exceptional loss to INR 412 Cr, resulting in its profit falling 99% year-on-year
4B Networks is Yadav’s third startup overall and second in the prop-tech segment, having founded Housing.com and Intelligent Interfaces before.
Listed internet major Info Edge has written off its entire investment in 4B Networks, a venture of former Housing.com founder and CEO Rahul Yadav.
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“Owing to concerns around [the] uncertainty of funding environment for 4B Networks, an impairment of INR 276 Cr has been charged as an exceptional item,” said Info Edge in its financial results for the third quarter of the financial year 2022-23 (Q3FY23).
The move propelled Info Edge’s total exceptional loss to INR 412 Cr, resulting in its profit falling 99% year-on-year.
Speaking in an analyst call, Info Edge CEO Hitesh Oberai said, “We are writing down the investment in light of the current state of the environment and the significant uncertainty towards funding options available to 4B in the future.”
To be sure, Info Edge had an exposure of nearly INR 520 Cr in 4B Networks; the listed internet giant has fully impaired the entirety of the same.
“In line with accounting policies consistently followed by the company, investment in 4B Networks Pvt Ltd, a partly owned subsidiary of its 100% subsidiary Allcheckdeals India Pvt Ltd amounting to INR 5,199.31 Mn… has been fully impaired, considering the current state of affairs and other relevant factors including excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options,” said Info Edge in its quarterly filings.