Info Edge files FIR against 4B Networks founder Rahul Yadav for alleged fraud

Sanjeev Bikhchandani-led Info Edge India Ltd has filed an FIR against former Housing.com founder Rahul Yadav for allegedly committing fraud by misuse of funds meant for proptech startup 4B Networks.

“The Company and its wholly owned subsidiary - Allcheckdeals India Private Limited (“AIPL”) have taken certain actions in relation to AIPL’s subsidiary 4B Networks Private Limited (“4B Networks”). Now, we would like to inform you that pursuant to a complaint filed by AIPL, a first information report (“FIR”) has been registered by the Bandra Police Station (Mumbai Police) on November 29, 2024 against Mr. Rahul Yadav, Mr. Devesh Singh, Mr. Pratik Choudhary, Mr. Sanjay Saini (and unnamed others) in connection with 4B Networks (an indirect subsidiary of the Company), alleging inter alia commitment of certain fraudulent acts involving 4B Networks’ funds,” the new-age internet company says in a regulatory filing.

In February 2023, Info Edge wrote off its ₹276 crore investment in proptech startup 4B Networks owing to concerns around uncertainty of the funding environment. Info Edge already owns property platform 99acres, job search portal Naukri and online matrimonial site Jeevansaathi.

Yadav, the former CEO of real estate search portal Housing, was in 2015 fired from the startup he founded in 2012.

In a recent earnings conference call with analysts, Hitesh Oberoi, co-promoter and managing director of Info Edge, said Housing has been spending aggressively for many years now and the competition with Housing continues to be intense. “There's not much change on that front. Things are like they were a year ago or two years ago. We continue to work on improving our experience and on improving our offerings. They continue to work on their stuff. There's been no change on that front,” said Oberoi.

"Our performance has improved actually over the last few quarters. If we are able to grow the 99acres business by 20% or 18% in the second half of this year, then for the year as a whole, 99acres will actually be close to breaking even. That's what we are targeting. Let's see what happens going forward," Oberoi added.