Info Edge Initiates Forensic Audit into Rahul Yadav’s 4B Networks

• ByStartupStory     |    June 2, 2023

Info Edge has recently announced the commencement of a forensic audit into 4B Networks, a proptech startup supported by Rahul Yadav. This action comes after Info Edge decided to write off its complete investment in the company. The main reason behind the audit is the failure of 4B Networks to provide the requested financial information.

Rahul Yadav, renowned as the founder of Housing.com but later dismissed due to public conflicts with investors, had previously worked at Anarock before embarking on his venture with 4B Networks.

According to a filing submitted to the exchanges, Info Edge revealed that its subsidiary, Allcheckdeals India, made investments and provided periodic funding to 4B Networks. The total amount invested was Rs 288 crore, with Rs 276 crore allocated towards share investments and Rs 12 crore as debt financing.

Allcheckdeals has sought information, “including details and particulars of financial transactions, transactions with related parties and such other aspects from 4B Networks and its current management,” which 4B Networks is contractually obligated to give but has not, Info Edge said in the filing.

“However, 4B Networks has repeatedly failed to provide AIPL with such information and has also not responded to the information requests by the Company on several occasions,” the filing added.

Last quarter, Info Edge had informed that it had written down its entire investment in 4B Networks and the loan fully impaired “in the backdrop of various factors including inter alia excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options.”

“As a consequence thereof, AIPL has exercised its contractual rights under the shareholders’ agreement and articles of association of 4B Networks and pursuant to the same, is initiating a forensic audit into the affairs of the investee company, i.e., 4B Networks and has appointed Deloitte Touche Tohmatsu India LLP as the forensic auditor in this regard,” the filing said.

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