Info Edge (India) Limited, the parent company of Naukri.com and Shiksha.com, has taken a strong stand by filing an FIR against Rahul Yadav. The complaint, registered on November 29 at Bandra Police Station, accuses Yadav and three others—Devesh Singh, Pratik Choudhary, and Sanjay Saini—of financial fraud and misusing company funds.
Immediate Action Taken
In its official statement, Info Edge revealed it has implemented measures against 4B Networks, its step-down subsidiary. Furthermore, its wholly-owned unit, Allcheckdeals India Private Limited, is also involved in these steps to address the allegations.
Background of Financial Issues
Previously, in 2022, Info Edge had written off its Rs 276 crore investment in 4B Networks. The decision followed concerns over excessive cash burn, liquidity problems, and uncertainties about funding. Moreover, the company noted that a failed forensic audit and missing critical information contributed to this drastic step.
Industry Responds to the Move
The action has sparked reactions across the industry. For instance, Deepak Shenoy, CEO of Capitalminds, commended Info Edge’s decisive approach. He remarked on X, “Finally, an investor has taken a strong stance against such practices.”
Rahul Yadav’s History of Controversy
Interestingly, this is not the first time Rahul Yadav has faced legal trouble. He gained significant attention in 2015 for co-founding Housing.com but was later dismissed as CEO due to allegations of misconduct.
Additionally, in 2023, the Economic Offenses Wing filed another FIR against Yadav for allegedly defrauding an advertising firm of over Rs 10 crore.
Current Allegations and Broader Implications
Through this FIR, Info Edge has sent a clear message about its commitment to addressing fraud and mismanagement. Consequently, this move underscores the importance of accountability in India’s startup ecosystem. As a result, other investors may follow suit in taking firm actions against similar issues.