Info Edge, the largest shareholder of Bizcrum Infotech, Bijnis’ holding company, has written off its entire investment in the Indian startup citing “principles of conservatism and prudence” amid the recent drastic market correction in the fast-growing South Asian ecosystem weakening global economy.
The listed Indian investor had invested around US$9.3 million in the New Delhi-headquartered startup, which has raised over US$43 million to date and has backers from Sequoia India, Matrix Partners India, Waterbridge and Westbridge .
The B-phase startup, whose latest round of funding was announced in September 2021, aims to be the “operating system for factories,” helping factories manage supplies and generate demand from buyers and other retailers alike.
Info Edge said it wrote off its investment in Bijnis in accordance with “principles of conservatism and prudence and after due consideration of factors such as continued cash consumption, limited availability of cash relative to unspecified liabilities related to buyback obligations (including liquidation preference)”. the company to investors under the shareholder agreement.”
“However, we will continue to assess the situation and work with the other shareholders to remedy the situation,” she assured.
The announcement follows Info Edge on Friday announcing a $33.4 million loss at 4B Networks, another startup the company recently wrote off. 4B Networks was founded by notorious Housing.com founder Rahul Yadav, and Info Edge owned a 57% stake in the newer startup.
The depreciation resulted in an overall loss of $8.4 million for Info Edge for the fiscal year ended March 2023, a significant departure from the $1.55 billion profit the company posted a year earlier. Like Indian news and analysis site The Arc pointed outThis is Info Edge’s first net loss in six years.
