Info Edge filed an FIR at Bandra Police Station on November 29, 2024, accusing 4B Networks founder and Housing.com co-founder Rahul Yadav, Devesh Singh, Prateek Chaudhary, Sanjay Saini and unidentified others of fraudulent activities. Was applied. ,
The FIR follows a forensic audit of 4B Networks initiated by Info Edge in 2023. fail To provide important financial information. Deloitte conducted an audit uncovering discrepancies in financial transactions and related-party activities.
In a stock exchange filing, Info Edge confirmed:
“There will be no significant financial impact or impact on the business operations of the company due to the FIR.”
investment gone wrong
Info Edge had invested Rs 288 crore (including Rs 12 crore debt) in 4B Networks through its subsidiary Allcheckdeals India Private Limited (AIPL). Despite early optimism about the startup’s growth, Info Edge wrote off Rs 276 crore in December 2022 due to high cash burn, liquidity challenges and weak funding environment.
Co-founder Sanjeev Bikhchandani later admitted that the investment was a mistake, underscoring the challenges of managing a high-risk startup.
About 4B Network
Established in November 2020, 4B Network aims to streamline real estate transactions by connecting brokers and developers through it. Broker Network PlatformIt also facilitated site visits and home-loan services for customers.
Despite its potential, the startup’s operational and financial issues raised concerns for its investors.
conclusion
Info Edge’s FIR against Rahul Yadav and others highlights increased accountability in India’s startup ecosystem. The case emphasizes the need for stronger financial monitoring and transparency, especially when dealing with large investments. As the investigation unfolds, the outcome will likely serve as a cautionary tale for investors and entrepreneurs.
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