How Rahul Yadav bungled Info Edge-funded 4B Networks
At the heart of the current crisis at the proptech startup lies a flawed business model, sham prospective buyers and higher-than-usual payouts to brokers.
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Editor's note: Info Edge has written off Rahul Yadav. The publicly listed online classifieds provider that owns about 60% of Yadav’s latest startup, 4B Networks, no longer finds any value in it. A property tech venture founded less than three years ago, 4B Networks was supposed to be Yadav’s comeback as a startup founder. It was also supposed to become a “Zomato or Uber or Ola of real estate”, says a former executive, and redeem Yadav, who is still remembered as the disgraced co-founder of Housing.com. In 2015, Yadav was ignominiously fired by the company’s board after repeatedly clashing with investors. For a few months last year, it did seem that Yadav may have scored big with 4B Networks, which runs proptech app Broker Network. Both Yadav and 4B Networks made headlines when Info Edge acquired a majority stake in the company. Over the course of almost two years, Info Edge invested Rs 276 crore in the venture in several tranches, with the last being in September. This money and Info Edge’s name were perceived as a validation of Yadav and his …
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