‘We admit that Rahul Yadav’s 4B Networks was a mistake': Info Edge CEO | Mint
Active Stocks
Tue Feb 20 2024 15:54:00
  1. Power Grid Corporation Of India share price
  2. 287.95 4.16%
  1. HDFC Bank share price
  2. 1,453.75 2.59%
  1. Tata Steel share price
  2. 141.05 -0.60%
  1. NTPC share price
  2. 345.65 2.01%
  1. ITC share price
  2. 406.05 -0.77%
Business News/ Companies / News/  ‘We admit that Rahul Yadav’s 4B Networks was a mistake': Info Edge CEO
BackBack

‘We admit that Rahul Yadav’s 4B Networks was a mistake': Info Edge CEO

Info Edge founder Sanjeev Bikhchandani says investing in Rahul Gandhi's startup was a 'mistake' after Q1 results.

Sanjeev Bikhchandani, CEO of Info Edge. Premium
Sanjeev Bikhchandani, CEO of Info Edge.

After the company reported its Q1 results for FY2024 on Friday, Info Edge founder Sanjeev Bikhchandani said that his decision to invest in Rahul Gandhi's realty tech startup 4B Networks was a ‘mistake’, according to media reports. 

Speaking to analysts here, Bikhchandani said, “We all make mistakes sometimes. Investors can also go wrong….I think we need to admit that 4B was a mistake. Companies go down but fraud is a different thing."

The remarks came weeks after the company's arm Allcheckdeals India wrote down all of its investment in the 4B Networks, which it had made because it had not received the requested financial information.

The company stated in a filing with the exchanges that its wholly owned subsidiary company Allcheckdeals India invested in and occasionally provided finance to 4B networks totaling 288 crore, of which 276 crore was invested in shares and 12 crore was debt financing.

The company's arm has appointed Deloitte Touche Tohmatsu India LLP as the forensic auditor, who will be supported and assisted by Saraf and Partners Law.

Allcheckdeals had asked 4B Networks and its current management for information, ‘including details and particulars of financial transactions, transactions with related parties, and such other aspects,’ which 4B Networks is contractually required to provide but has not, Info Edge stated in the exchange filing.

As a result, Allcheckdeals India has exercised its contractual rights under the shareholders' agreement and articles of association of 4B Networks and, in accordance with those rights, is initiating a forensic audit into the affairs of the investee company, i.e., 4B Networks.

Meanwhile, Info Edge (India) on Friday reported a standalone net profit of 200 crore for the first quarter of FY24, registering a growth of 34.7% from 148 crore in the same quarter of the previous fiscal. The company had posted a net loss of 503 crore in the March quarter (Q4FY23).

Info Edge’s standalone revenue from operations in Q1FY24 increased 15.1% to 584.2 crore from 507.6 crore in the year-ago period.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 12 Aug 2023, 01:38 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App