Info Edge, the parent company of the jobs listing portal Naukri, has filed a first information report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, and others, alleging fraudulent misuse of funds.
“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,” Info Edge said in a stock exchange filing on Saturday.
Rahul Yadav is also the cofounder of Housing.com.
Strained relationship
In July last year, Info Edge initiated arbitration proceedings against 4B Networks after the startup failed to provide crucial information regarding its operations and management for a forensic audit. Deloitte was appointed to conduct the audit after 4B Networks did not disclose details of financial transactions and related-party activities requested by the investor.
Info Edge stated that the FIR would have no material financial impact on its business operations. The consumer internet group had previously written off its equity investment of Rs 276 crore in 4B Networks during the December 2022 quarter, citing excessive cash burn, liquidity issues, and uncertainty regarding funding options. At that time, Info Edge co-founder Sanjeev Bikhchandani acknowledged that investing in the startup was a mistake.
Founded in November 2020, 4B Networks facilitated communication and business transactions between real estate developers and brokers through its Broker Network Platform. The platform also helped brokers conduct site visits and offer home-loan-related services to clients. Info Edge’s subsidiary, Allcheckdeals India Pvt Ltd (AIPL), had invested Rs 288 crore, including Rs 12 crore as debt financing, in 4B Networks.
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