Info Edge writes off investment in bijnis, posts Rs 107 Cr FY23 loss
Info Edge said it wrote off its entire investment in B2B marketplace bijnis as it believes the investment lost its inherent value.
Friday May 26, 2023,
2 min Read
Info Edge wrote off its entire investment worth Rs 76.6 crore in Bizcrum Infotech Private Ltd, the parent entity of.
Info Edge, the largest shareholder in the Delhi-based B2B marketplace, cited the company's continuous cash burn, limited availability of cash in proportion to liabilities considering buyback obligations (including liquidation preference) towards investors, and uncertainty of future capital raise as reasons behind the write-off.
The company’s management believes that the investment has lost its inherent value, Info Edge stated.
This comes 18 months after bijnis raised $30 million in its Series B funding round led by WestBridge Capital. to boost its manufacturing capabilities and expand the retailer base on the platform. The funding round saw participation from investors such as Tiger Global, Matrix Partners India, Sequoia Capital India, and Waterbridge Ventures, along with Info Edge.
This is Info Edge's second write-off. It wrote off Rs 276 crore investment in 4B Networks in Q3 of the last financial year.
The write-offs bore heavily on the online classifieds conglomerate's Q4 FY23 earnings, with the company reporting a consolidated loss of Rs 503 crore against a net profit of Rs 719.5 crore in the comparable period last year.
The internet company recorded a loss of Rs 107.4 crore in the fiscal year gone by—a sharp fall from Rs 1,276 crore earned as profits in FY22. According to reports, this is the firm's first net loss in six years.
However, its revenue from operations grew 48% to Rs 2,346 crore in FY23 compared to the previous financial year.
While Info Edge's shares plummeted 5.6% during intra-day trading on NSE, it closed the day 6.86% higher at Rs 4,168 apiece.
Edited by Kanishk Singh