Info Edge, a prominent online classifieds major, has announced in its earnings statement for the quarter and year ending March 2023 that it has written off its entire investment of INR 76.6 Cr in Bijnis, a New Delhi-based B2B marketplace. The decision was made after careful consideration of factors including ongoing cash burn, limited cash availability relative to undisclosed liabilities related to buyback obligations, and uncertainty regarding future capital raise.
This marks the second write-off by Info Edge in the fiscal year 2023, having previously written off INR 276 Cr in investment in 4B Networks, a company led by Rahul Yadav. The impairment of investments has affected the company’s belief in the inherent value of these ventures.
Bijnis, a fashion and lifestyle marketplace connecting manufacturers and retailers, raised $30 Mn in its Series B funding round led by WestBridge Capital 18 months ago. The startup boasts notable investors such as Matrix Partners India, Sequoia Capital India, Waterbridge Ventures, and Info Edge. It also counts Deepinder Goyal, the founder of Zomato, Asish Mohapatra, the founder of OfBusiness, and Ruchi Kalra, the co-founder of Oxyzo, among its backers.
While Info Edge has written off its investment, both the company and Bijnis maintain a positive relationship. Info Edge clarified that the write-off was due to unspecified liabilities arising from the buyback obligations in the shareholders’ agreement. It assured that this write-off does not reflect the startup’s financial performance, market opportunity, or value proposition.
Bijnis reported a net loss of INR 54.5 Cr in FY22, a significant increase from INR 18.3 Cr in FY21. However, its revenue from operations rose to INR 25.1 Cr in FY22 from INR 15.9 Cr in FY21. The majority of the startup’s expenses were attributed to employee benefits and freight costs.
Both Info Edge and Bijnis remain optimistic about the future, emphasizing their strong partnership and belief in the immense potential ahead. The write-off is considered a technical issue resulting from the buyback clause and does not reflect negatively on Bijnis’ growth prospects or financial performance.
