Info Edge Files Fraud Complaint against 4B Networks Founder
03 Dec 2024
2 Min Read
CW Team
Info Edge, the parent company of the job portal Naukri, has lodged a First Information Report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, along with others, over allegations of fraudulent activities involving the misuse of funds.
In a stock exchange filing on Saturday, Info Edge disclosed that the FIR was registered by the Bandra Police Station (Mumbai Police) on 29 November 2024. The complaint names Rahul Yadav, along with Devesh Singh, Pratik Choudhary, and Sanjay Saini, among others, accusing them of engaging in fraudulent activities related to 4B Networks' funds.
The issue traces back to July 2023 when Info Edge initiated arbitration proceedings against 4B Networks after the company failed to provide critical information about its operations and management. This prompted Info Edge to appoint Deloitte to conduct a forensic audit, which sought clarity on financial transactions and related-party dealings. Despite this, Info Edge assured that the FIR would have no material financial impact on its operations.
In the December 2022 quarter, Info Edge wrote off its equity investment of Rs 2.76 billion in 4B Networks, citing excessive cash burn, liquidity challenges, and uncertainty in funding prospects. The decision was described as a conservative measure, despite the startup's initial promise of strong growth. Info Edge co-founder Sanjeev Bikhchandani later admitted that the investment in 4B Networks was a mistake.
Founded in November 2020, 4B Networks aimed to facilitate communication and transactions between real estate developers and brokers through its Broker Network Platform. The company also supported brokers in conducting site visits and providing home loan services to clients. Info Edge, through its subsidiary Allcheckdeals India Pvt Ltd (AIPL), had invested ?2.88 billion in 4B Networks, including Rs 120 million as debt financing.
The unfolding case highlights challenges faced by investors in ensuring transparency and accountability in high-growth startups, particularly in sectors like real estate technology.
Info Edge, the parent company of the job portal Naukri, has lodged a First Information Report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, along with others, over allegations of fraudulent activities involving the misuse of funds.
In a stock exchange filing on Saturday, Info Edge disclosed that the FIR was registered by the Bandra Police Station (Mumbai Police) on 29 November 2024. The complaint names Rahul Yadav, along with Devesh Singh, Pratik Choudhary, and Sanjay Saini, among others, accusing them of engaging in fraudulent activities related to 4B Networks' funds.
The issue traces back to July 2023 when Info Edge initiated arbitration proceedings against 4B Networks after the company failed to provide critical information about its operations and management. This prompted Info Edge to appoint Deloitte to conduct a forensic audit, which sought clarity on financial transactions and related-party dealings. Despite this, Info Edge assured that the FIR would have no material financial impact on its operations.
In the December 2022 quarter, Info Edge wrote off its equity investment of Rs 2.76 billion in 4B Networks, citing excessive cash burn, liquidity challenges, and uncertainty in funding prospects. The decision was described as a conservative measure, despite the startup's initial promise of strong growth. Info Edge co-founder Sanjeev Bikhchandani later admitted that the investment in 4B Networks was a mistake.
Founded in November 2020, 4B Networks aimed to facilitate communication and transactions between real estate developers and brokers through its Broker Network Platform. The company also supported brokers in conducting site visits and providing home loan services to clients. Info Edge, through its subsidiary Allcheckdeals India Pvt Ltd (AIPL), had invested ?2.88 billion in 4B Networks, including Rs 120 million as debt financing.
The unfolding case highlights challenges faced by investors in ensuring transparency and accountability in high-growth startups, particularly in sectors like real estate technology.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
