India’s one of the most talked about and among the fastest growing startups of the country, Housing.com looks like in a big time trouble now. As, after weeks of drama, its CEO Rahul Yadav has resigned from the company. The board members will be announcing their decision today.
It was earlier reported that the investors might be looking to remove Rahul from the post of CEO role, after the public spat with Sequoia Capital’s Shailendra Singh.
In his letter, he also said that he will be available for a week to help in transition.
Dear board members and investors, I don’t think you guys are intellectually capable enough to have any sensible discussion anymore. This is something which I not just believe but can prove on your faces also!
I had calculated long back (by taking avg life expectancy minus avg sleeping hrs) that I only have ~3L (hours) in my life. ~3L hrs are certainly not much to waste with you guys!
Hence resigning from the position of Directorship, Chairmanship and the CEO position of the company. I’m available for the next 7 days to help in the transition. Won’t give more time after that. So please be efficient in this duration.
The investors responded a day later through the law firm Morrison & Foerster LLP acknowledging the resignation.
In a discussion among the Investor group, I was requested to send you an express acknowledgement, on their behalf and without any other effect on the terms of our agreements, of your April 30 resignation from your positions (1) on the board of directors (including as chairman and managing director) and (2) as CEO.
With best regards Noah Carr Morrison & Foerster LLP
The board of Housing will meet today to discuss the resignation and chart out the new plan for the company.
Rahul currently owns 4.57% stake in the company, Nexus Ventures owns 19%, SoftBank 32%, and Helion Ventures and Falcon Edge about 10% each.
Late last month, SoftBank’s Vice-Chairman Nikesh Arora resigned from the board. SoftBank executive Jonathan Bullock will take his place.
The Housing board consisted of three directors i.e. Rahul Yadav, Advitiya Sharma and Nikesh Arora. According to reports, there will be decision on two more people joining the board which includes Ritesh Banglani of Helion and Sujan of Nexus. SoftBank has asked all shareholders including Nexus Venture Partners, Helion Venture Partners, Qualcomm Ventures, Nirvana Ventures, Falcon Edge Capital to be present for the meeting which will be held at the office of the law firm AZB & Partners in Mumbai today.
We tried reaching out Advitiya, however his response is awaited.
According to people close to the development, investors would be preferring Rahul to remain in the company and involve himself with technology development. The board will also be discussing about the structure, recent marketing expenditure and acquisitions.
Housing has already spent over INR 120 Cr. on its “Look Up” promotional campaign while the original budget was much lower. The company had also made some acquisition bids without the consent of investors, the sources said.
Even after resigning from the company on 30th April, Rahul was seen sending mails to employees motivating them for the coming month. Interestingly, employees had no clue about Rahul’s resignation and they only got to know about all this through media.
Housing.com was founded by 12 IIT alumni, the company had raised $90 Mn from Softbank last year. One of its cofounder Advitiya Sharma is also facing legal proceedings post an accident which took the life of two of Housing’s employees. After spat with Sequoia Capital, Rahul Yadav had sent a mail to the Housing.com’s employees stating that the group is trying to “malign” Housing.com as it competes with the group owned real estate portal Magicbricks, on which Bennett, Coleman & Co. Ltd, Times Group’s holding company had sent a legal notice to Housing.com for alleged defamation.