Travel startup Stayzilla CEO and co-founder Yogendra Vasupal has been arrested by the commissioner of police in Chennai and locked up in Puzhal prison. The homestay aggregator halted its operations last month to plan and remodel the business strategies.
A cheating case was filed by Jigsaw advertising agency accusing Yogendra with unpaid dues worth ₹1.2 crores. Sources report that the co-founder confessed defrauding the agency worth ₹1.72 crores when questioned by a team led by Chennai assistant commissioner of police S Muthuvel Pandi and inspector Anand Babu of the entrustment fraud wing of the Central City Crime branch.
An email screenshot went viral on social media which was posted on Twitter by another co-founder of Stayzilla Sachit Singhi. Sachit asked the investors of the venture to help Yogendra out who went ‘missing’ after he last confirmed his location.
“We need immediate help. Not sure what’s happening with Yogi and we have not known his whereabouts for last 3 hours for now. And, I think even I’ll be in custody soon,” Singhi wrote to the investor.
Apparently, Vasupal’s phone was snatched away by the police. The email also mentioned threats and harassment claims from the advertising firm and a complaint that the firm had registered in Mylapore Police Station.
The company that had raised about $34 million across four rounds of funding, counts Matrix Partners India and Nexus Ventures Partners among investors.