Rs 1462 crore firm on the verge of collapse, founder Rahul Yadav lived life of luxury as employees went unpaid | File Photo
In one other beautiful case of enterprise failure, the lead investor in Rahul Yadav’s new startup noticed Rs 280 crore “vanish”. Rahul Yadav, the Indian startup business’s ex-poster boy, first grabbed headlines together with his meteoric rise and fall with Housing.com. He is now accused of splurging on luxuries as a substitute of paying his employees.
Yadav’s 4B Networks, which operates Broker Network, is on the verge of an distinctive collapse. As per lead investor InfoEdge, the firm has burnt greater than Rs 280 crore in lower than 18 months. However, over 150 employees haven’t obtained their salaries since November 2022.
On the different hand, founder Rahul Yadav reportedly moved round in a Mercedes-Maybach and rented a boardroom at Mumbai 5-Star Taj Land’s End for Rs 80,000 per day. He can be accused of borrowing private loans from long-time employees. Rahul Yadav faces a legal case filed by one such colleague from whom he borrowed Rs 50 lakh, it was reported.
Some employees have been additionally reportedly requested to take “advance salary” loans after which switch the cash to Yadav. Yadav maintained a lavish life-style by means of this monetary wrestle at the firm, employees have alleged.
“Yadav told us luxuries such as his Maybach came from his earnings at Anarock,” and he was “also looking to buy a Bentley,” an worker was quoted as saying. Yadav has denied all allegations associated to any wrongdoing at the firm, it was reported.
Lead investor Info Edge has now initiated a forensic audit into Yadav’s firm, as he “repeatedly failed to provide the information”. Info Edge has invested Rs 276 crore in 4B Networks alongwith debt financing of Rs 12 crore through its wholly-owned subsidiary Allcheckdeals India Private Limited (AIPL).
Rahul Yadav based 4B Networks in 2020 and final raised funds to the tune of Rs 90 crore in September 2022 at a valuation of $185 million (Rs 1462 crore).
(Inputs from IANS)
