Rs 280 cr vanished as another Indian startup founder enjoyed lavish lifestyle
Rahul Yadav, the founder of Broker Network (run by 4B Networks), reportedly maintained a luxurious lifestyle, including owning a Mercedes-Maybach, and hired a boardroom at the Taj Land's End for Rs 80,000 per day, as employees were left unpaid for months. This is just one sensational story of another indian founder taking his startup for a joyride. Broker Network reportedly lost more than Rs 280 crore in less than 18 months, and more than 150 employees have not received pay since november of last year, according to a report in the top startup news portal Inc42.
"Yadav asked his dependable workers for personal loans so he could pay staff salaries. One such senior worker gave Yadav a loan of about Rs 50 lakh. He has reported Yadav to the police, the article said, citing sources. Additionally, it was requested that other workers take out "advance salary" loans and send the money to Yadav. Employees said that Yadav continued to live a luxury lifestyle at this time. One worker was cited as stating, "Yadav told us luxuries like his Maybach came from his earnings at Anarock," that he was "also looking to buy a Bentley."
According to the study, Yadav, who created AHousing.com, has refuted every accusation of impropriety at the business. Yadav's 4B Networks received a Rs 276 crore investment from Allcheckdeals india Private Limited (AIPL), a fully-owned subsidiary of Info Edge, as well as Rs 12 crore in loan finance. Now that Yadav has "repeatedly failed to provide the information," Info Edge has launched a forensic investigation of the prop-tech firm in which it has a shareholding. Yadav founded 4B Networks in 2020; its most recent round of funding totaled Rs 90 crore in september 2022 at a $185 million value.
"Yadav asked his dependable workers for personal loans so he could pay staff salaries. One such senior worker gave Yadav a loan of about Rs 50 lakh. He has reported Yadav to the police, the article said, citing sources. Additionally, it was requested that other workers take out "advance salary" loans and send the money to Yadav. Employees said that Yadav continued to live a luxury lifestyle at this time. One worker was cited as stating, "Yadav told us luxuries like his Maybach came from his earnings at Anarock," that he was "also looking to buy a Bentley."
According to the study, Yadav, who created AHousing.com, has refuted every accusation of impropriety at the business. Yadav's 4B Networks received a Rs 276 crore investment from Allcheckdeals india Private Limited (AIPL), a fully-owned subsidiary of Info Edge, as well as Rs 12 crore in loan finance. Now that Yadav has "repeatedly failed to provide the information," Info Edge has launched a forensic investigation of the prop-tech firm in which it has a shareholding. Yadav founded 4B Networks in 2020; its most recent round of funding totaled Rs 90 crore in september 2022 at a $185 million value.