Rahul Yadav: The founder of Broker Network (operated by 4B Networks), a Prop-Tech company, was said to have maintained a lavish lifestyle while leaving his employees unpaid for several months. Inc42, a startup news portal, disclosed that Broker Network burned through more than ₹280 crores in less than 18 months, while more than 150 employees had not received their salaries since November of the previous year.
The article noted that Yadav resorted to borrowing personal loans from long-time employees to pay salaries. One high-ranking employee reportedly lent Yadav close to ₹50 lakhs and has filed a criminal complaint against him.
Rahul Yadav’s entrepreneurial journey has been described as unusual. Inc42 commented that it should have raised concerns among investors, including Info Edge, who supported him. He has a pattern of starting companies, raising funds for them, and eventually shutting them down.
Broker Network encountered difficulties starting in August 2022 when the company faced a lack of funds to pay its employees. Info Edge, the firm involved, began questioning Yadav about the need for over 2,000 employees.
Employees alleged that approximately INR 9 crore was being spent per month on the “home visits” business and around INR 18-20 crore on the “home loans” front. This amount reportedly covered operational and employee expenses, resulting in a monthly burn rate estimated to be just over INR 30 crore.
They also noted that all through this, Yadav maintained a luxurious lifestyle such as owning a Mercedes-Maybach and hiring a boardroom at the Taj Land’s End for Rs80,000 per day.
“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.
