Info Edge India, among India's few listed Internet companies, today announced today that it will be writing off its entire investment, amounting to Rs 29.3 Crore, in e-commerce company 99Labels this quarter. This follows shortly after the company increasing its investment in Zomato and Meritnation, and it appears to now picking its winners, from its investment portfolio. MediaNama spoke with Info Edge Founder and Vice Chairman Sanjeev Bikhchandani about why they wrote off this investment, and his views on the e-commerce environment in India: MediaNama: Why have you written off the investment in 99Labels? Bikhchandani: We have taken into account the current e-commerce environment, especially the funding environment, and we have recognized that this asset has been impaired. We have said that we're going to write off this investment this quarter, and have informed our investors. MediaNama: Does 99Labels have cash to operate? Bikhchandani: They are figuring out what to do, but they're not shutting down. MediaNama: What happens to your shareholding in 99 Labels? Bikhchandani: We have no announcements to make on the shareholding. We continue to be shareholders. As and when there is an announcement to be made, we will make it. MediaNama: How is the e-commerce environment in India? Bikhchandani: In the last 12 months, the funding environment has suffered and the government announced that FDI in e-commerce is not permitted. 99labels had not raised any FDI, but it does need further funding. 80-90% of the (Venture Capital) money in the market is foreign money. MediaNama: What about Indian money?…
