Online classifieds marketplace Quikr is no longer a unicorn, or a start-up valued at more than $1 billion. Swedish investor Kinnevik, which has 17 per cent stake in Quikr, has devalued it by 45 per cent to roughly around $570 million due to the fraud committed by certain dealers and vendors in its managed rentals segment.
Reportedly, the fall in valuation comes as the Bengaluru-based online classifieds and transactions marketplace discovered fraud in its co-living and auto segment, where employees along with vendors faked transactions. This led to the company laying off 1,000 from its 3,000-odd workforce, besides shutting down divisions where there was fraud.
“This is a reflection of not only the effect of the uncovered fraud but also the company reducing its footprint within these particular segments as well as a number of amendments to the company’s revenue recognition principles to strengthen the integrity of its reported financials going forward,” Financial Express quoted Samuel Sjöström, Head of Strategy, Kinnevik as saying.
Quikr has a slew of online businesses covering real estate, discover and bookings, jobs search, used-goods buying and selling, and home services.
Founded in 2008, Quikr had left a memorable footprint in over 1000 cities. Late last year, Pranay Chulet, founder and CEO of Quikr, had said in an interview that the company was gearing up for a public market offering in 2021, joining a list of few top internet ventures in the country that are aiming to go public in the coming years.