Info Edge Lost Rs532 Crore from Its Investment in Rahul Yadav’s 4B Networks: Report
IANS 08 November 2023
Tech and Internet company Info Edge lost around Rs532 crore after writing off its investment in Rahul Bhoopsingh Yadav’s Broker Network (4B Networks Private Limited), according to reports.
 
While Info Edge’s cash infusion in Broker Network was Rs288 crore, the rest is the notional loss from a higher valuation that the startup had reached. 
 
The proptech startup had a valuation of Rs719 crore before Info Edge had to write down its entire investment, reports Moneycontrol.
 
The company impaired the amount considering current state of affairs and other relevant factors, including excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options, reports Entrackr.
 
Info Edge has a 59% stake in 4B Networks.
 
Following a complaint by Info Edge, the proprietors of Naukri.com, the economic offences Wing (EOW) is now probing the case pertaining to allegedly transferring a part of the investors’ monies to another company where Rahul’s wife Karishma Yadav is the co-owner and a chief executive officer (CEO).
 
Info Edge had invested a total of Rs276 crore in Mr Yadav’s company 4B Networks Pvt Ltd, and given him a Rs12-crore loan, totalling to Rs288-crore, and has claimed that the money was allegedly siphoned off through illegal means.
 
The complaint accused Mr Yadav of misappropriating the funds in different forms like shady transactions, loans to some former staffers, heavy deposit for an office allegedly routed via his wife’s company, and vendors purportedly transferring payments from 4B Networks to other companies of the family.
 
Earlier in August, the EOW had booked Mr Yadav and his associate Sanjay Saini following a complaint lodged by Co-Founder of Interspace Communications Pvt Ltd, Vikas Omprakash Nowal, for allegedly cheating him of a total of Rs10-crore.
 
Later, the EOW had raided the offices and homes of Yadav-Saini duo, a look out circular was issued against Mr Yadav, while a Mumbai Court rejected his anticipatory bail plea in end-August.
 
Meanwhile, Info Edge’s revenue from operations grew 47.6% to Rs2,345 crore during the fiscal year ending March 2023 in contrast to Rs1,589 crore in FY22, according to the company’s consolidated annual financial statements.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Free Helpline
Legal Credit
Feedback