The parent company of job portal Naukri.com, Info Edge, filed an FIR (first information report) against 4B Network founder Rahul Yadav and others, claiming fraudulent misuse of funds. In addition to Rahul Yadav, Pratik Choudhary, Devansh Singh, Sanjay Saini, and some other unnamed people are alleged in this FIR. 4B Network is a portfolio company of Naukri.com’s parent company.
Info Edge started arbitration proceedings against 4B Networks in July last year because the startup had not provided crucial information for a forensic audit. When 4B Network did not share details of financial transactions, Deloitte, an umbrella brand of audit, consulting, and financial advisory, was appointed for the task.
The consumer internet group Info Edge made its Rs 276 crore equity investment in the 4B Network in the December 2022 quarter. This investment showed excessive cash burn, uncertainty regarding funding options, and liquidity issues. During that time, Info Edge co-founder Sanjeev Bikchndani accepted that investing in the 4 B Network was a big mistake.
4B Network was founded in November 2020. Its Broker Network platform eased communication and business transactions between real estate developers and brokers. This platform also helped conduct site visits and offer home-loan-related services to clients. Info Edge’s subsidiary, Allcheckdeals India Pvt Ltd, invested Rs 288 crore in 4B Networks.
