Info Edge has lodged a first information report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, and others over accusations of fraudulent activities pertaining to the misuse of the funds
However, Info Edge has assured that the FIR will not impact its business operations
In July last year, Info Edge initiated arbitration proceedings against 4B Networks after it failed to provide important financial information
Online classified company Info Edge, the parent of jobs listing portal Naukri, has lodged a first information report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, and others over accusations of fraudulent activities pertaining to the misuse of the funds.
Yadav is also the cofounder of Housing.com.
“An FIR has been registered by the Bandra Police Station (Mumbai Police) on November 29, 2024 against Yadav, Devesh Singh, Pratik Choudhary, Sanjay Saini (and unnamed others) in connection with 4B Networks (an indirect subsidiary of the company), alleging inter alia commitment of certain fraudulent acts involving 4B Networks’ funds,” Info Edge said in an exchange filing on Saturday (November 30).
However, Info Edge has assured that the FIR will not impact its business operations.
4B Networks was launched in 2020 by Yadav. In July last year, Info Edge initiated arbitration proceedings against 4B Networks after it failed to provide important financial information requested by Sanjeev Bikhchandani-led company, which holds a 65% stake in the company.
Info Edge appointed Deloitte as the forensic auditor to look into the affairs of 4B Network, after writing off its entire investment of INR 288 Cr in Yadav’s beleaguered startup. Info Edge invested in the startup through AIPL.
Back then, the company said that the startup was showing strong growth but due to high cash burn and the overall funding environment, decided to write off the investment following “principles of conservatism.”
In October last year, Info Edge filed a complaint with the Economic Offences Wing (EOW) of Mumbai Police against Yadav over alleged cheating to the tune of INR 288 Cr.
Besides Yadav, the EOW complaint named 4B Networks Private Limited, and Chaudhary as well as Singh, Yadav’s wife Karishma Khokhar, and RY Advisory LLP, the partnership firm which was set up by the Broker Network founder.
Founded in 1995 by Bikhchandani, Info Edge is one of India’s oldest internet-based companies, which operates across sectors such as recruitment (Naukri), real estate (99acres), matrimony (Jeevansathi) and education (Shiksha).
It counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech, and unlisted edtech company Adda247 among its portfolio companies.
The company reported a 64.6% decline in its net profit to INR 84.73 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 239.74 Cr in the same quarter last year.
