In yet another headline-making story regarding Indian startups, Broker Network founder (operated by 4B Networks) Rahul Yadav indulged in a luxurious lifestyle while keeping his employees unpaid for the past 18 months. The story made news as he blew away Rs 280 crore.
He bought a Mercedes-Maybach and hired a boardroom at Taj Land’s End for Rs 80,000 per day after taking money from his long-time employees who were made to take personal loans. This money was used to pay the employees. One top-level employee gave Rs 50 lakh to Yadav, who filed a criminal case against Yadav.
Yadav also stooped down to the level of asking his employees to take ‘advance salary’ loans and transfer the amount to him. Meanwhile, 150 employees haven’t been paid for the past 18 months. All through, Yadav maintained a luxurious lifestyle.
However, Yadav has denied any wrongdoing and claims that the money he spent was from his earnings at Anarock. Allcheckdeals India Private Limited (AIPL), a subsidiary of Info Edge, provided debt financing of Rs 12 crore. Now, Info Edge has initiated a forensic audit as Yadav failed to provide any information.
Founded in 2020, 4B Networks raised Rs 90 cr in September 2022 at a valuation of $185 million. Yadav’s startup joins the list of founders like BharatPe’s co-founder Ashneer Grover, Zilingo’s Ankita Bose, and glaring financial loopholes at GoMechanic.
