News Update

Info Edge reduces the value of its INR 276 crore investment in 4B Networks, founded by Rahul Yadav

• ByStartupStory     |    February 11, 2023

Info edge has written off its entire investment in 4B Networks, a proptech startup led by Rahul Yadav, the founder of Housing.com. The company invested INR 276 crore in the firm as of September 2022, but due to concerns about the uncertain funding environment, it has recorded a write-down.

The proptech startup led by Housing.com founder Rahul Yadav. The company took this step due to concerns about the potential difficulties 4B Networks may face in surviving the ongoing funding winter, given its high cash burn rate. 

Info Edge, a leading company, announced a charge of INR 276 crore as an exceptional item in its Q3FY23 financial results. The investment was made by the company’s subsidiary, Allcheckdeals India, in 4B Networks.

4B Networks provides a unique platform, Broker Network, which facilitates communication between real estate developers, brokers, and buyers. This platform serves as a link between brokers and potential buyers, helping to streamline the real estate process.

During the announcement of its September 2022 quarter results, Info Edge revealed an additional investment of INR 90 crore, bringing its total investment to INR 276 crore. This investment was made with the aim of enhancing the company’s offerings in the highly competitive real estate industry.

During an analyst call, the CEO of Info Edge, Hitesh Oberoi, was asked about the sudden change in sentiment surrounding the company’s investments in the platform. He stated that it would be challenging for the company to secure additional funding in the future.

According to CEO Hitesh Oberoi, Info Edge has completely impaired its investment of INR 276 crore in 4B Network Limited through its subsidiary, in accordance with the company’s policies and conservative principles. Despite their belief in the potential of the tech industry, the decision to write down the investment was made due to the current state of the environment and the substantial uncertainty surrounding 4B’s future funding options. Oberoi stated, “While we continue to believe that their industry tech market has potential, we took this decision to write down the investment in light of the current state of the environment and the significant uncertainty towards funding options available to 4B going forward.”

Hitesh Oberoi added that the idea behind 4B Networks was intriguing and the company performed well for some time, leading Info Edge to make further investments. CEO Chintan Thakkar expressed optimism about 4B Networks and its growth potential.

However, in light of the rapid cash burn rate and the challenging funding environment in recent months, Thakkar acknowledged the uncertainty surrounding future funding options for 4B. Following the company’s conservative principles, the CEO explained that this was the reason for the full write-off of the investment.

 

 

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