From Housing.com to Broker Network: Here's a look at Rahul Yadav's chequered past
2 min read 03 Jun 2023, 06:32 PM ISTInfo Edge holds a 65% stake in the company and has written off its investment.
PremiumAfter failed attempts to seek asked financial information from proptech startup 4B Networks, Info Edge announced to initiate a forensic audit into the Rahul Yadav-backed firm. The move has come in response to 4B Network's failure to provide asked financial information to investor Info Edge.
Broker Network (operated by 4B Networks Private Limited) is on the verge of collapse, as its lead investor Info Edge, which holds 65 per cent stake, has written off its ₹280 crore investment in majority shareholder and initiated a forensic audit, reported Inc42.
Rahul Yadav known for founding Housing.com and had ended up losing the position in the firm after repeated public spats with investors. He also worked with Anarock before founding 4B Networks.
Info Edge's subsidiary Allcheckdeals India invested in as well as provided frequent funding to 4B networks, the company said in it stock exchange filling. The funding amounted to ₹288 crore- ₹275 crore as investment into shares and ₹12 crore as debt financing.
The proptech firm was asked about "details and particulars of financial transactions, transactions with related parties and such other aspects from 4B Networks and its current management." 4B Networks is legally bount to give all the previously mentioned details, but failed to give any of the latest info, Info Edge said in the filing.
“However, 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," the filing added.
According to report by Inc42, Rahul Yadav-backed firm had not paid salaries, had not paid vendors, and burnt cash along with corporate governance issues.
Here's a look at his past stints
Rahul Yadav, IIT Bombay dropout, had started Housing.com in June 2012. However, in July 2015, the company's board had sacked Yadav stating that his behaviour towards investors and media was not 'befitting' of a CEO.
He then went on start another firm Interlligent Interfaces, which was struck off in 2016. In March 2016, he started RY Advisory and then went on to work with Anarock Technology as chief product and technology officer.
Interestingly, Yadav’s entrepreneurial journey shows a pattern of starting companies, raising funds and then shutting them down (in a year or two).
Troubles at 4B Networks
Rahul Yadav tried to deplete Info Edge's shareholding in the company by offering to bring in ₹50 crore of fresh funds from a Dubai-based property dealer in March-April at a valuation that was 99 percent lower than its last funding round, according to report by Moneycontrol.
This was the company had exhausted ₹192 crore of investor money in the past 14 months, and majority shareholder Info Edge had asked for granular financial details of the company.
According to the report, Yadav had made multiple offers to Info Edge via email in the past few months on behalf of a Dubai-based property dealer.
