 "startups, funding, business")
After writing off its investment in proptech startup 4B Networks, Info Edge is now initiating a forensic audit into the affairs of the company and has appointed Deloitte Touche Tohmatsu India as the forensic auditor. The company said it in a regulatory filing.
Info Edge in the filing explained that its subsidiary Allcheckdeals India has invested from time to time into 4B Networks. This includes an amount of Rs 288 crore (of this Rs 276 crore has been invested in shares and Rs 12 crore as debt finance).
The company also said the action is being taken as 4B Networks have time and again failed to provide information that it had asked for. “AIPL has been, at various instances, seeking information, including details and particulars of financial transactions, transactions with related parties and such other aspects from 4B Networks and its current management, all of which are required to be provided to AIPL contractually under the shareholders’ agreement and articles of association of 4B Networks. However, 4B Networks has repeatedly failed to provide AIPL with such information and has also not responded to the information requests by the Company on several occasions,” said the filing.
Info Edge saw its net profit for the fourth quarter of FY23 reported a loss of Rs 349.5 crore, compared to a profit of Rs 285.7 crore in the same quarter last fiscal.
During the results, the company had stated that it has impaired an amount of Rs 12 crore granted as ICD to 4B Networks.
In the Q3FY23 the company had also impaired Rs 276 crore invested in 4B Networks owing to the uncertainty of the funding environment.
According to 4B Networks LinkedIn page, it has 350 people working for it.
