Rahul Yadav, once hailed as one of India’s most audacious entrepreneurs, is back in the headlines not for building startups, but allegedly dismantling them. Arjun Vaidya, founder of V3 Ventures and a respected voice in the Indian D2C ecosystem, recently posted a scathing LinkedIn critique that has reignited the debate around accountability and recklessness in India’s startup world.
In a detailed post that has since gone viral, Vaidya accuses Yadav of repeatedly burning investor capital, abandoning teams, and leaving vendors unpaid across three separate ventures over the past decade. The accusations, while not entirely new, now come with added data and firsthand testimonies.
1. Housing.com (2012–2015): Vision Undone by Volatility
Rahul Yadav’s entrepreneurial journey began with Housing.com, a real estate search portal co-founded with friends from IIT Bombay. The company made headlines with its bold design, aggressive marketing, and a record $120 million+ raise from investors, including SoftBank.
But internal chaos followed. Yadav infamously wrote an open resignation letter addressed to investors, dismissing their role, and setting off a series of boardroom battles. The company laid off over 600 employees, and while the product retained user interest, the leadership instability crippled Housing.com’s trajectory. Eventually, it was merged and dissolved into PropTiger.
2. Broker Network (2020–2023): ₹100 Crore Burn, No Explanation
After a hiatus, Yadav resurfaced with Broker Network, promising to transform real estate brokering digitally. The startup secured ₹90–₹100 crore from Info Edge, one of India’s most reputed internet-era investors.
Yet, despite the financial backing, the company went silent by 2023, with no public closure announcement.
Numerous reports suggest that the company’s vendors and employees were left unpaid. Info Edge quietly wrote off the investment. The project vanished, and again, no concrete explanation was offered by the founder.
3. Kult App (2022–Present): The ₹130 Crore Beauty Brand Meltdown
Yadav’s latest venture, Kult App, branded itself as a premium D2C beauty marketplace and raised $20 million (~₹130 crore). On paper, it had all the makings of a unicorn in the making glossy campaigns, top-tier influencer tie-ups, and aggressive hiring.
But the ground reality, according to Arjun Vaidya and multiple insiders, is far bleaker:
- Less than ₹10 crore in actual revenue
- Over ₹15 crore routed to an advisory firm owned by Yadav
- ₹15 crore+ in unpaid salaries and bonuses
- ₹63 lakh in GST dues
- Leading global brands and Indian vendors reportedly unpaid
The collapse, once again, has been silent and messy with former employees still in limbo and brand partners distancing themselves.
A Pattern of Negligence, Not Misfortune
As Vaidya’s post highlights, “This isn’t one founder getting unlucky. It’s a pattern: Raise big → Burn fast → Exit early → Leave others to clean up.”
He argues that while startup failures are an expected part of the ecosystem, “this is negligence, dressed up as ambition.” His post has triggered intense discussions across founder groups, VC circles, and LinkedIn threads.
Why This Matters: Collateral Damage
Each such implosion has ripple effects:
- Employee Trust Erodes: Talented professionals leave startups with unpaid dues and broken morale.
- Investor Risk Aversion: Legitimate founders face heightened scrutiny and slower funding rounds.
- Consumer Skepticism: Confidence in Indian digital-first brands and marketplaces is affected.
Worse still, individuals like Yadav have not faced any legal or regulatory action, despite multiple accusations over the years.
Can Accountability Be Enforced?
India’s startup ecosystem is at a pivotal stage, with increasing scrutiny from SEBI, DPIIT, and global investors. But governance frameworks remain largely informal especially in early-stage startups.
Experts now suggest the following actions:
- Clawback Clauses: Investors must enforce stricter contracts regarding misuse of funds.
- Founders Registry & Track Records: Like a credit score system, a database of past ventures, exits, and legal/financial red flags.
- Whistleblower Portals: For employees and vendors to anonymously flag mismanagement.
- Public Disclosures: Mandating transparent closure reports for startups with over ₹10 crore in funding.
What’s Next for Rahul Yadav?
So far, Yadav has not responded publicly to these renewed accusations. Despite the repeated failures, his name continues to attract curiosity and occasionally, fresh funding. Critics argue this reflects an ecosystem still drawn to charisma over competence.
Whether this latest episode finally prompts structural change remains to be seen.
But one thing is certain, as Arjun Vaidya concludes in his post: “We’ve glamorized chaos long enough. It’s time the ecosystem stops mistaking recklessness for vision.”
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