Info Edge Reports Rs 532 Crore Loss In Rahul Yadav’s 4B Networks

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.