Info Edge, a technology company, invested Rs 288 crore in 4B Networks, a proptech startup founded by Rahul Yadav. However, the company wrote off its investment in 4B Networks due to suspected financial irregularities.
Info Edge had a 57 per cent stake in 4B Networks. Info Edge initiated a forensic audit into 4B Networks in June this year as the startup did not share financial information despite repeated requests.
Info Edge has been seeking information including details of financial transactions and related party transactions, which were mandatory disclosures under the agreement, but 4B Networks has not responded.
Info Edge co-founder Sanjeev Bikhchandani said that the investment in 4B Networks was a mistake and that the company has reviewed its investment process internally and upped its due diligence. He added that while Info Edge lost money in some companies, it had made substantial returns in others.
In short, Info Edge invested in 4B Networks but later wrote off its investment due to suspected financial irregularities. The company has initiated a forensic audit and reviewed its investment process internally.