Naukri.com owner files FIR against Housing.com founder Rahul Yadav
Info Edge, owner of Naukri.com, has filed a First Information Report (FIR) against Housing.com founder Rahul Yadav and top executives of 4B Networks. The complaint comes as the latest development in the long-standing feud between Info Edge and the proptech start-up. The dispute began in early 2023 when 4B Networks, led by Yadav, did not provide critical financial information sought by Info Edge, which held a majority stake (65%) in the company at that time.
Allegations of financial misconduct
The FIR has accused Yadav and other executives of fraudulently using company funds. Info Edge has clarified that this legal action will not impact its business. The dispute with 4B Networks intensified in June 2023, when Info Edge launched a forensic audit after repeated requests to provide details of financial transactions and dealings, were ignored by the start-up.
Info Edge's investment and concerns
Info Edge had invested ₹280 crore in 4B Networks, including ₹275 crore in shares and ₹12 crore as debt. Despite this massive backing, 4B Networks allegedly defaulted on salary payments, vendor obligations, and showed serious lapses in corporate governance. The decision to audit came after Info Edge raised concerns about financial irregularities.
Yadav's leadership and funding attempts
Yadav's leadership has been the center of attention in the unfolding drama. Famous for his controversial stint at Housing.com, where he was ousted in 2015 after public spats with investors, Yadav has had a roller-coaster entrepreneurial journey. His ventures, including Housing.com and Intelligent Interfaces, often struggled with issues of governance and financial management.
Tensions rise over proposed funding
At 4B Networks, Yadav tried to raise more money by pitching a ₹50 crore investment from a Dubai-based property dealer. However, the offer came at drastically reduced valuation—99% lower than the previous funding round. This further stoked tensions with Info Edge, which had already flagged concerns over financial transparency. Speaking to analysts, Sanjeev Bikhchandani, founder of Info Edge previously said, "We all make mistakes sometimes. Investors can also go wrong....I think we need to admit that 4B was a mistake."
