Info Edge, reeling from Rahul Yadav’s startup loss, now strikes out Bijnis
Info Edge, the main shareholder of Bizcrum Infotech, Bijnis’ holding company, canceled its entire investment in the Indian startup, citing “principles of conservatism and prudence”, during the latest drastic market correction in the fast-growing South Asian ecosystem struggling with a weakening global economy.
The Indian listed investor had invested around $9.3m in the New Delhi-based startup, which has globally raised more than $43m to date and counts Sequoia India, Matrix Partners India, Waterbridge and Westbridge among its donors.
The Series B startup, whose last funding round was disclosed in September 2021, aims to be the “operating system for factories,” helping factories source and generate demand from buyers and others retailers.
Info Edge said it was canceling its investment in Bijnis in accordance with the “principles of prudence and prudence and after due consideration of factors such as the continued consumption of cash, the limited availability of cash in proportion to unspecified liabilities in with respect to the redemption obligations (including the liquidation preference) of the company towards investors under the shareholders’ agreement.
“However, we will continue to assess the situation and work with other shareholders to remedy the situation,” he said.
Rishabh Katiyar, director of Info Edge Ventures, said in a statement to TechCrunch that the delisting at Bijnis was “a technical delisting due to unspecified liabilities ‘that may materialize’ due to redemption obligations in the existing shareholders signed between the company and the investors.
“This liability is contingent in nature and has been taken into account based on the prudent accounting policies followed by the company in accordance with IndAS accounting standards. Therefore, it is not a reflection on the company’s financial performance, market opportunity and value proposition. Furthermore, this liability would only materialize if the company is unable to provide an exit to the principal investors through other exit mechanisms such as sale to third parties, listing, among other mechanisms defined in the agreements. at a specified date in the future and all key shareholders together. choose to exercise the right of redemption as an exit mechanism.
The announcement follows Info Edge disclosing a $33.4 million loss on Friday in 4B Networks, another startup it recently delisted. 4B Networks was founded by infamous Housing.com founder Rahul Yadav, and Info Edge held a 57% stake in the new startup.
The write-offs triggered an overall loss of $8.4 million for Info Edge in the fiscal year ending March 2023, a sharp variance from the $1.55 billion profit it posted last year. last year. As Indian news and analytics site The Arc pointed out, this is Info Edge’s first net loss in six years.