Newsletter
Info Edge, one of India’s largest digital giants, formally filed an FIR against Rahul Yadav, the controversial founder of Housing.com, and other executives of 4B Network, alleging fraudulent activities.
The details: the FIR claims that 4B Network, an app for brokers, failed to provide critical financial information related to its operations, raising red flags about the company’s management practices.
Backstory:
- Info Edge invested nearly ₹280 crores in Yadav’s latest PropTech venture, acquiring a 65% stake over time
- Despite being well-funded, 4B Networks reportedly failed to meet obligations like paying salaries and clearing vendor dues
- In 2023, after repeated requests for financial disclosures went unanswered, Info Edge initiated a forensic audit
Between the lines: what apparently triggered Info Edge was 4B Networks’ attempt to raise ₹50 crore from Middle Eastern investors at a 99% down-valuation from the previous round.
