Info Edge, Bijnis’s holding firm, the largest shareholder of Bijkram Infotech, has written off its entire investment in the Indian startup, citing “principles of conservatism and prudence” in the latest drastic market correction in the fast-growing South Asian ecosystem. has put. Struggling with a weak global economy.
The publicly listed Indian investor had invested about $9.3 million in the New Delhi-headquartered startup, which has raised over $43 million in total to date and counts Sequoia India, Matrix Partners India, Waterbridge and Westbridge as its backers. Is.
The Series B-stage startup, whose last funding round was disclosed in September 2021, aims to be an “operating system for factories” that helps plants process supplies and connect with buyers and other retailers alike. generates demand.
Info Edge said it will hedge its investment in the business “following principles of conservatism and prudence and considering factors including continued cash burn, limited availability of cash in proportion to unspecified liabilities with respect to buyback obligations (including liquidation preference)”. The latter was writing the company towards the investors under the shareholders’ agreement.
“However, we will continue to evaluate the situation and work with other shareholders to rectify the situation,” it assured.
The announcement comes after Info Edge on Friday disclosed a $33.4 million loss in 4B Networks, another startup it recently spun off. 4B Network was founded by Rahul Yadav, the infamous founder of Housing.com, and Info Edge held a 57% stake in the new startup.
The write-offs totaled an $8.4 million loss for Info Edge in the fiscal year ending March 2023, a sharp departure from the $1.55 billion profit it posted a year earlier. As reported by Indian news and analysis website The Ark, this is the first net loss for Info Edge in six years.