In yet another shocking case of business failure, Rahul Yadav, once hailed as the poster boy of the Indian startup industry, is facing serious allegations of mismanagement and lavish spending in his new venture. The lead investor in Yadav’s startup, 4B Networks, has reported a loss of Rs 280 crore, while more than 150 employees claim they have not received their salaries since November 2022.

Rahul Yadav gained fame and notoriety with his rapid rise and fall at Housing.com, and now his latest venture, Broker Network, operated by 4B Networks, is on the brink of collapse. According to InfoEdge, the lead investor, the company has burned through a significant amount of funds in less than 18 months, leading to a dire financial situation.

Reports have emerged alleging that Yadav indulged in a luxurious lifestyle, splurging on expensive cars like the Mercedes-Maybach and renting high-priced boardrooms at Mumbai’s prestigious Taj Land’s End hotel. Furthermore, he is accused of borrowing personal loans from long-time employees, resulting in a criminal case filed against him by one of his colleagues for a loan of Rs 50 lakh.

Employees have also claimed that they were asked to take “advance salary” loans and transfer the money directly to Yadav. Despite the financial struggles faced by the company, Yadav allegedly maintained an extravagant lifestyle. He denied all allegations of wrongdoing at the company.

In response to the alarming situation, InfoEdge, the lead investor, has initiated a forensic audit of 4B Networks after Yadav repeatedly failed to provide the required information. InfoEdge has invested Rs 276 crore in the startup, along with a debt financing of Rs 12 crore through its subsidiary, Allcheckdeals India Private Limited (AIPL).

Rahul Yadav founded 4B Networks in 2020, and the company last raised funds amounting to Rs 90 crore in September 2022, valuing the startup at $185 million (Rs 1462 crore). However, the current financial crisis and allegations of mismanagement have put the future of 4B Networks in jeopardy, raising concerns about the fate of both the company and its employees.

This is a developing story and we will provide updates once we are able to contact the founder for a statement. Stay tuned for more information.

In yet another shocking case of business failure, Rahul Yadav, once hailed as the poster boy of the Indian startup industry, is facing serious allegations of mismanagement and lavish spending in his new venture. The lead investor in Yadav’s startup, 4B Networks, has reported a loss of Rs 280 crore, while more than 150 employees claim they have not received their salaries since November 2022.

Rahul Yadav gained fame and notoriety with his rapid rise and fall at Housing.com, and now his latest venture, Broker Network, operated by 4B Networks, is on the brink of collapse. According to InfoEdge, the lead investor, the company has burned through a significant amount of funds in less than 18 months, leading to a dire financial situation.

Reports have emerged alleging that Yadav indulged in a luxurious lifestyle, splurging on expensive cars like the Mercedes-Maybach and renting high-priced boardrooms at Mumbai’s prestigious Taj Land’s End hotel. Furthermore, he is accused of borrowing personal loans from long-time employees, resulting in a criminal case filed against him by one of his colleagues for a loan of Rs 50 lakh.

Employees have also claimed that they were asked to take “advance salary” loans and transfer the money directly to Yadav. Despite the financial struggles faced by the company, Yadav allegedly maintained an extravagant lifestyle. He denied all allegations of wrongdoing at the company.

In response to the alarming situation, InfoEdge, the lead investor, has initiated a forensic audit of 4B Networks after Yadav repeatedly failed to provide the required information. InfoEdge has invested Rs 276 crore in the startup, along with a debt financing of Rs 12 crore through its subsidiary, Allcheckdeals India Private Limited (AIPL).

Rahul Yadav founded 4B Networks in 2020, and the company last raised funds amounting to Rs 90 crore in September 2022, valuing the startup at $185 million (Rs 1462 crore). However, the current financial crisis and allegations of mismanagement have put the future of 4B Networks in jeopardy, raising concerns about the fate of both the company and its employees.

This is a developing story and we will provide updates once we are able to contact the founder for a statement. Stay tuned for more information.