Yet another Indian founder with a fat wallet, Broker Network (operated by 4B Networks) founder Rahul Yadav has recklessly used his income despite not paying his employees.
Relentless splurging
He has reportedly splurged on luxuries such as 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.
His unicorn Broker Network burnt over Rs 280 crore in less than 18 months, while over 150 employees have not been paid since November last year.
Sued by last resort lender
Inc42 reportedly further revealed that he had to resort to his long-time employees to borrow personal loans to pay employee salaries.
One such top-level employee who had to lend nearly Rs 50 lakh to Yadav has filed a criminal complaint against Yadav.
Others were also asked to take “advance salary” loans and transfer the amount to Yadav.
No end to recklessness
Employees alleged that despite such spendings Yadav never discontinued his lifestyle.
“Yadav told us luxuries such as his Maybach came from his earnings at Anarock,” and he was “also looking to buy a Bentley,” one employee was quoted as saying.
Yadav has denied all allegations related to any wrongdoing at the company.
Forensic audit initiated
Important to know is that Allcheckdeals India Private Limited (AIPL), a wholly-owned subsidiary of Info Edge, invested Rs 276 crore in Yadav’s 4B Networks and provided debt financing of Rs 12 crore.
Info Edge has now initiated a forensic audit into the startup in which it holds a stake, as Yadav “repeatedly failed to provide the information”.
Founded in 2020 by Yadav, 4B Networks last raised Rs 90 crore in September 2022 at a valuation of $185 million.
