- Info Edge, a major internet company, has written off a total loss of INR 532.25 Crores in Rahul Yadav’s proptech startup, 4B Networks, during Q2 FY23.
- The write-off components include INR 80.77 Crores for net assets, INR 12.32 Crores for Inter-corporate deposits (ICD) given, and a reduction of INR 2,80.27 Crores for Non-Controlling Interest payable, based on Indian accounting standards (IND AS).
- Info Edge had initially invested INR 288 Crores in 4B Networks, with the remaining loss being a notional loss due to a higher valuation of the startup in the past.
- The decision to write off the loss is attributed to factors such as excessive cash burn by the startup, prevailing liquidity issues, and uncertainty regarding funding options.
- Info Edge made the investment in 4B Networks through its subsidiary, Allcheckdeals India Pvt Ltd, and the write-off reflects the challenges and uncertainties faced by the proptech startup.