What led Info Edge to file an FIR against Rahul Yadav

Apart from the 4B Networks founder, the FIR also names several key executives of the firm

- Priyamvada C.

Investors rarely turn against the founders they back, but Info Edge (India) Ltd has taken an unusual step. Last week, the consumer internet group filed a first information report (FIR) against Rahul Yadav, founder of its portfolio company 4B Networks, and several key executives, alleging misuse of company funds.

Those named in the FIR include Devesh Singh, Pratik Choudhary, and Sanjay Saini. While Info Edge clarified in an exchange filing that the move would not materially affect its business operations, the FIR signals a rare showdown between an investor and a portfolio company founder. Mint breaks down the development.

What led to the FIR?

The dispute dates back to early 2023, when 4B Networks, a real estate-focused platform led by Yadav, failed to provide critical financial information requested by Info Edge, which owns a 65% stake in the company.

By June 2023, Info Edge had initiated a forensic audit following repeated failures to obtain financial details and disclosures about related-party transactions. Despite investing ₹280 crore in 4B Networks—including ₹275 crore in equity and ₹12 crore as debt—the company faced financial turmoil, defaulting on salaries and vendor payments amid glaring lapses in corporate governance.

These issues escalated as Broker Network, operated by 4B Networks, teetered on the brink of collapse. Info Edge eventually wrote off its entire ₹280 crore investment.