Info Edge, the largest shareholder of Bizcrum Infotech, the Bijnis firm holdinghas written off all its investment in the Indian startup, citing “principles of conservatism and prudence,” in the latest drastic market correction in the fast-growing South Asian ecosystem grappling with a weakening global economy.
The publicly traded Indian investor had invested around $9.3 million in the New Delhi-based startup, which overall has raised more than $43 million to date and counts Sequoia India, Matrix Partners India, Waterbridge and Westbridge among their sponsors.
The Series B stage startup, whose latest funding round was revealed in September 2021, is intended to be the “operating system for factories,” helping plants process supplies and also generate demand from buyers and others. retailers alike.
Info Edge said it was writing off its investment in Bijnis following “principles of conservatism and prudence and after due consideration of factors including continued cash burn, limited cash availability in proportion to unspecified liabilities in respect of obligations repurchase (including liquidation preference) of the company to investors under the shareholder agreement”.
“However, we will continue to evaluate the position and work with the other shareholders to remedy the situation,” he said.
The announcement follows Info Edge’s disclosure on Friday of a $33.4 million loss on 4B Networks, another startup that was recently cancelled. 4B Networks was founded by Infamous Housing.com founder Rahul Yadav and Info Edge owned a 57% stake in the new company.
The write-offs caused an overall loss of $8.4 million for Info Edge in the fiscal year ending March 2023, a sharp deviation from the $1.55 billion profit it had posted the previous year. Like Indian news and analysis website The Arc he pointedthis is Info Edge’s first net loss in six years.
Info Edge, reeling from the initial loss of Rahul Yadav, now cancels Bijnis by manish singh originally posted on TechCrunch
Article Source link and Credit