Naukri.com parent Info Edge files FIR against 4B Networks founder Rahul Yadav, others for fraud

Consumer internet giant Info Edge, the parent company of Naukri.com, has filed a First Information Report (FIR) against Rahul Yadav, founder of its portfolio company 4B Networks, along with three associates, alleging misuse of funds.

The case, filed at Bandra Police Station, Mumbai, implicates Yadav and key executives in alleged financial irregularities, the company announced in a stock exchange filing, Nov. 29, 2024.

The allegations stem from a forensic audit launched in 2023, after 4B Networks failed to provide Info Edge with details about its operations, management, and financial transactions.

This prompted Info Edge’s subsidiary, Allcheckdeals India Pvt. Ltd., to pursue legal and arbitration proceedings.

4B Networks: From promise to controversy

Founded in November 2020 by Rahul Yadav, 4B Networks aimed to bridge communication between real estate developers and brokers while facilitating loan origination for end-consumers.

Info Edge initially backed the Mumbai-based startup, investing Rs. 288 crore over multiple tranches through Allcheckdeals India. At its peak, 4B Networks commanded a valuation of Rs. 719 crore, with Info Edge holding a 59% stake.

However, Info Edge disclosed a staggering loss of Rs 532 crore after writing off its investment. This includes the initial Rs 288 crore cash infusion and notional losses from the startup's diminished valuation.

Suspicions grew when Yadav allegedly engaged in dubious transactions with 4B Realtech Pvt. Ltd., a company linked to his associate.

Legal actions and broader implications

The FIR lists Yadav alongside Devesh Singh, Pratik Choudhary, and Sanjay Saini, alleging fraudulent acts that drained funds from 4B Networks.

In a related case, the Economic Offenses Wing (EOW) had earlier registered a complaint against Yadav and Saini for allegedly cheating advertising firm Interspace Communication Pvt. Ltd. Info Edge wrote off its equity investment of Rs 276 crore in 4B Networks due to excessive cash burn, liquidity issues and uncertainty toward funding options.