The controversy at online real estate company Housing.com has drawn to a close after Rahul Yadav withdrew his resignation after having written a letter denigrating the Board.
The ongoing controversy at online real estate start-up Housing.com, which was initiated by CEO Rahul Yadav shooting off a resignation letter that was extremely contemptuous about the company’s Board members and investors on April 30, has come to an end after he withdrew his resignation and apologised for his actions.
Rahul Yadav, the 26-year-old co-founder (Housing.com was co-founded in 2012 by a dozen IITians), had reportedly written a fiery resignation letter to board members and investors, in which he gave them a one-week deadline to ‘help in the transition’ – he had not elaborated on exactly what that meant.
The Housing.com board, which met today to look into Rahul Yadav’s grievances came to a decision to reconstitute the board itself and include all main shareholder representatives in it, but tellingly it has ‘reaffirmed its faith in Rahul Yadav’s vision at Housing’.
Rahul Yadav, on his part said: “After some frank and healthy discussions with the Board I have agreed to withdraw my resignation and I apologize for my unacceptable comments about the board members. I look forward to staying on at Housing as CEO and building an even greater company, while working in full harmony with the board”.
Yadav’s scornful resignation letter had questioned “intellectual capability” of the board members.
Read Rahul Yadav’s resignation letter:
Housing dot com CEO Rahul Yadav resigns and writes this not so charitable letter to investors. Wow! pic.twitter.com/fvjeciFVX8
— Sujit Patel (@SujitPatel99) May 5, 2015
Check out Twitter conversation about Rahul Yadav:
The controversy was initially triggered by CEO Rahul Yadav’s alleged e-mail to Sequoia Capital India chief Shailendra Singh in which Yadav had alleged that Sequoia was looking to lure Housing.com’s employees away. The mail also said that if Singh didn’t stop ‘messing around’ with him, he would “vacate the best in the venture capital firm”. A ‘hurt’ Singh had subsequently made a rebuttal of Yadav’s accusations. Following the spat, reports emerged that Housing.com investors could move against Rahul Yadav for his outburst. Yadav did not back down and was quoted as saying that he wasn’t being moved out and investors didn’t have any say in any call in the running of the company. “I run it and take all the calls,” Yadav said in a statement.
In December 2014, Housing.com came into prominence after it raised $90 mn through private equity infusion from SoftBank Group along with Falcon Edge and other existing investors, which its co-founder Advitiya Sharma said the company intended to use to map over 40 million houses across 300 cities in India and provide on-off buttons to home owners and agents – company’s goal is ‘mapping every single house in the country, on the platform’, .
“Our vision is to help the world live better,” says Housing.com.
Among its other investors are Nexus Venture Partners, Helion Venture Partners, Qualcomm Ventures, Nirvana Ventures and Falcon Edge Capital.
The company offers services in rent/resale, PG/hostels, new projects, land/plot projects, home loans and rental agreement among others.
Housing.com has raised more than $121 million in the last two years.
Check out the ongoing controversy on Twitter: