Missing Fund: Info Edge Lodged FIR Against Housing.com Former CEO Rahul Yadav

Info Edge, the parent company of Naukri and 99Acres.com, lodged an FIR against Rahul Yadav, the former CEO of Housing.com and others, on Friday for fraud regarding 4B networks missing funds.

The dispute started in early 2023 when Rahul's 4B Network refused to give Info Edge the important financial data they requested.

Info Edge in stock exchange filling said, "An FIR has been registered by the Bandra Police Station (Mumbai Police) on November 29, 2024, against Rahul Yadav, Devesh Singh, Pratik Choudhary, Sanjay Saini (and unnamed others) in connection with 4B Networks, alleging inter alia commitment of certain fraudulent acts involving 4B Networks’ funds."

According to the report, Info Edge invested Rs. 280 crore in 4B Network. However, despite the significant backing, 4B failed to provide salary and vendor payments on time, demonstrating a serious lack of corporate governance.

Commenting on the situation, Sanjeev Bikhchandani, Founder of Info Edge, said, "Backing Yadav "was a mistake" and companies go under but fraud is different."

Rahul Yadav's History

Rahul Yadav's business career has undoubtedly been quite the journey. He founded Housing.com, but after conflicts with several important players, he was ejected from the company in 2015. Later, with the support of Flipkart founders, he founded a firm called Intelligent Interfaces, which quickly shut down after running out of funding.

Rahul returned in late 2020 with a new Proptech platform, Broker Network, known as 4B Network. At 4B, Yadav attempted to get more finance by proposing a Rs 50 crore investment from a local real estate dealer. However, this offer came with a significantly lower valuation—99% lower than the previous funding.