InfoEdge, a consumer Internet company, has initiated a forensic examination of its portfolio company 4B Networks, founded by Housing.com's Rahul Yadav, for failing to disclose information of financial transactions and related-party activities when requested by the investor. InfoEdge said in a stock exchange filing that it hired Deloitte to carry out a forensic audit of the property-tech business.
Info Edge wrote off its Rs 276 crore equity stake in 4B Networks during the December 2022 quarter, claiming "excessive cash burn, prevailing liquidity issues, and significant uncertainty regarding funding options."
It said that 4B Networks has repeatedly failed to provide AIPL with such information and has also not responded to the information requests by the company on several occasions.
InfoEdge had invested Rs 288 crore in 4B Networks through AIPL, including Rs 12 crore in debt finance.
4B, which was founded in November 2020, facilitates communication and business transactions between real estate developers and brokers through its Broker Network Platform. It also assists brokers in conducting site visits and providing clients with home-loan-related services.