Housing.com co-founder under scanner for ‘splurging’ Rs 280 crore
Broker Network burnt over Rs 280 crore in less than 18 months, while over 150 employees have not been paid since November last year.
NEW DELHI: In a sensational story of another Indian founder taking his start-up for a joyride, Broker Network (operated by 4B Networks) founder Rahul Yadav reportedly maintained a luxurious lifestyle such as owning a Mercedes-Maybach and hired a boardroom at the Taj Land’s End for Rs 80,000 per day, as employees were left unpaid for months.
According to a report, Broker Network burnt over Rs 280 crore in less than 18 months, while over 150 employees have not been paid since November last year.
“Yadav turned to his longtime employees to borrow personal loans to pay employee salaries. One such top-level employee lent close to Rs 50 lakh to Yadav. He has filed a criminal complaint against Yadav,” the report noted, citing sources.
Other employees were also asked to take “advance salary” loans and transfer the amount to Yadav. Employees alleged that all through this, Yadav maintained a luxurious lifestyle.
“Yadav told us luxuries such as his Maybach came from his earnings at Anarock,” and he was “also looking to buy a Bentley,” one employee was quoted as saying.
Yadav, who founded housing.com has denied all allegations related to any wrongdoing at the company, according to the report.
Allcheckdeals India Private Limited (AIPL), a wholly-owned subsidiary of Info Edge, invested Rs 276 crore in Yadav’s 4B Networks and provided debt financing of Rs 12 crore.
Now, Info Edge has initiated a forensic audit into the proptech startup in which it holds a stake, as Yadav “repeatedly failed to provide the information”.
Founded in 2020 by Yadav, 4B Networks last raised Rs 90
His luxurious lifestyle was marked by purchases like Mercedes-Maybach, and hiring a boardroom at the Taj Land’s End for Rs 80,000 per day, as staff were left unpaid
crore in September 2022 at a valuation of $185 million.
AIPL sought information, including details and particulars of financial transactions, transactions with related parties and such other aspects, from 4B Networks and its current management. “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,” according to an exchange filing by Indo Edge.
