99acres Faces Scrutiny as Info Edge Board Appoints Law Firm to Probe Alleged Policy Violations
99acres Faces Scrutiny as Info Edge Board Appoints Law Firm to Probe Alleged Policy Violations
“Info Edge Launches Independent Investigation Into Whistleblower Allegations Against 99acres Employees”
Info Edge (India) Ltd., the parent company of prominent digital platforms including Naukri.com, 99acres, Jeevansathi, and Shiksha, is currently dealing with internal governance issues following a whistle-blower complaint that points to alleged policy violations within its real estate vertical, 99acres.
Whistle-Blower Complaint and Independent Investigation
The company, in a recent stock exchange filing, confirmed that it has received a whistle-blower complaint highlighting potential misconduct by certain employees associated with 99acres. In response, the Audit Committee and the Board of Directors have taken swift action by appointing a specialist law firm to conduct an independent investigation into the matter.
While the inquiry is still in progress, the company clarified that, as of now, there is no material impact on its financial statements. This proactive approach aligns with corporate governance best practices, reflecting Info Edge’s commitment to transparency and accountability.
Strong Financial Performance Despite Internal Turmoil
Despite these developments, Info Edge has demonstrated robust financial performance in the first quarter of FY2025. For the quarter ending June 30, the company reported a 32% year-on-year increase in net profit, reaching ₹343 crore. This growth was supported by solid revenue gains across both recruitment and non-recruitment verticals.
The company’s consolidated operating revenue stood at ₹791 crore, marking a 17% increase over the same period last year. Total income rose to ₹1,004 crore, up from ₹827 crore in the previous year, reflecting strong business momentum across verticals. However, expenses also rose from ₹484.5 crore to ₹563.8 crore, in line with overall business expansion.
Segment-Wise Performance Highlights
Recruitment Solutions (Naukri.com): Revenue from Info Edge’s flagship recruitment portal saw a 15% year-on-year growth, totalling ₹562 crore. This continues to be the company’s largest and most profitable segment.
99acres (Real Estate Platform): Despite the internal investigation, the platform reported a 12% increase in revenue, reaching ₹110.6 crore. The company attributed this growth to both a higher number of billed customers and an increase in average billing per customer.
Other Verticals (Jeevansathi & Shiksha): These businesses posted a 30% growth, indicating strong traction in both the matrimonial and education services segments.
Governance and Business Outlook
Info Edge's prompt response to the whistle-blower complaint underscores its emphasis on governance and ethical conduct. The company’s decision to engage an independent legal expert ensures objectivity and transparency in handling the allegations.
Financially, Info Edge appears resilient, with its diverse portfolio continuing to generate growth across segments. The ongoing investigation at 99acres, if resolved responsibly, is unlikely to derail the broader business trajectory, especially given the strong fundamentals in its core recruitment and allied businesses.
