Housing.com founder Rahul Yadav is raising roughly INR 90 Cr from Info Edge, its sole and existing investor, for Broker Network, his proptech company. The company will use the funds to further its expansion and growth objectives.
The deal will be executed through Info Edge’s wholly-owned subsidiary Allcheckdeals India, which will hold a 59.8% stake in the Mumbai-based proptech platform.
The transaction will be carried out through Allcheckdeals India, a wholly-owned subsidiary of Info Edge, which would have a 59.8% share in the Mumbai-based proptech platform.
According to 4B Networks’ regulatory filing with the Registrar of Companies, the board of the parent company of Broker Network approved a special resolution to issue 1,913 compulsorily convertible preference shares (CCPS) to Allcheckdeals India at an issue price of INR 4,70,465.24 per share, bringing the funding amount close to INR 90 Cr (RoC).
Yadav created Broker Network in 2020 to link brokers with home purchasers and developers. Additionally, it enables users to market their properties on the platform and provides consumers with services linked to house loans through third-party lenders like banks and non-banking financial institutions (NBFCs).
In December of last year, Info Edge made an 18 Cr INR investment in 4B Networks. In February, the online company made a further investment of INR 9 Cr. Later in March, the Noida-based business made an additional INR 137.12 Cr investment to take a majority ownership position in the startup.
Including the most recent fundraising, Info Edge has reportedly invested INR 227 Cr in Broker Network thus far this year.
The firm from Mumbai claims to be home to more than one million brokers and to have more than 1,000 active real estate projects on its platform. Additionally, the business asserts that since its founding, home loans totaling INR 4,000 Cr have been given.
Broker Network is the second proptech startup of Yadav, who previously cofounded Housing.com, along with 10 others, from hostel rooms in IIT-Bombay in 2012. While the startup took off, Yadav’s tenure as its CEO had an unsavoury end.
After writing a scathing email against investors, he tendered his resignation in 2015. He later joined back the company and was eventually fired after reports emerged of the startup spending INR 120 Cr on marketing campaigns even as the company bled money.
