Housing.com’s founder Rahul Yadav’s prop-tech startup Broker Network has raised another Rs 90 crore from its existing and sole investor Info Edge. Following this new infusion, Info Edge’s subsidiary Allcheckdeals India now controls a 59.8% stake in the Mumbai-based company.
The board at Broker Network’s parent 4B Networks has passed a special resolution to issue 1,913 CCPS at an issue price of Rs 4,70,465.24 per share to raise Rs 90 crore by Info Edge’s subsidiary Allcheckdeals India Private Limited, according to regulatory filings with the Registrar of Companies (RoC).
The company said the new proceeds will be used for expansion and growth in the filing. With this infusion, Info Edge has invested a total of Rs 227 crore in Broker Network in 2022. It’s worth noting that Info Edge has been running a property listing platform 99acres since 2005.
Yadav has diluted his stake to 31.52% following the allotment of this round. the company has been valued at around $185 million or Rs 1,462 crore (post allotment).
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4B Networks is engaged in the business of enabling real estate developers and brokers to communicate with each other and conduct their business via the Broker Network Platform. The company claims to have over 50,000 brokers on the platform and disbursed home loans of over Rs 1,000 crore. 4B Networks facilitates loans through third-party lenders such as banks and non-banking financial corporations (NBFCs).
The 21-month-old company is yet to file its financial statements for the last fiscal year (FY22) but Broker Network was in the pre-revenue stage in its first fiscal year (FY21). While the company had recorded nothing in operating revenue during FY21, its losses stood at Rs 2.90 crore during the fiscal year.
Yadav left Housing in 2015 after a spat between the investors of the SoftBank-backed company. In 2017, Housing was merged with PropTiger in an all-stock deal worth $70-75 million. Yadav also served as vice president and senior vice president at Anarock Technology for about four years.