Info Edge initiates inquiry into whistleblower's allegations at 99acres, its real estate platform.
Info Edge Ltd., one of India's oldest and most diversified internet companies, has announced the launch of an independent investigation following a whistleblower complaint alleging violations of company policies by employees in its real estate vertical, 99acres.
The company, which operates job recruitment, education, matrimony, property platforms, and a dating app, has emphasized that the matter has had no material impact on its financial statements. This is in line with the ongoing assessment by a reputed specialist law firm, which is part of Info Edge's commitment to transparency, compliance, and corporate governance.
Info Edge, founded in 1995 by Sanjeev Bikhchandani, has been a prolific startup investor. In May, the company approved a plan to commit up to Rs 1,000 crore (about $118 million) to its latest vehicle, Info Edge Venture Investment Fund III. The firm's investments in startups this year, including Anscer Robotics and Bachatt, are estimated to have grown ninefold.
Despite the ongoing investigation, Info Edge posted strong quarterly results. The company's consolidated net profit rose 32% year-on-year to Rs 342.9 crore in the June quarter. The revenue for the same period was Rs 790.9 crore, up 17%.
99acres, launched in 2005, is one of India's leading online real estate platforms. The investigation is being undertaken in accordance with Info Edge's publicly available whistle-blower policy. The details of the complaint have not been disclosed by the company.
The Audit Committee and Board of Directors at Info Edge have taken note of the allegations. The company has reiterated that the matter has had no material impact on its financial statements, and the gross internal rate of return of its startup investments remains a healthy 36%.
Info Edge continues to strive for transparency and adherence to its policies, ensuring a strong foundation for its diverse portfolio of businesses. The investigation is still ongoing.
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