Help! I need everybody: Stayzilla CEO Yogendra Vasupal

After Bengaluru-based homestay network startup Stayzilla's co-founder and CEO Yogendra Vasupal was arrested on Tuesday on charges of fraud filed by an advertising company, one of his blog posts is going viral. The post, written by Vasupal before the arrest was published on his Medium account on Wednesday by his wife and co-founder Rupal Yogendra. The long blog post titled 'Help! I need everybody...' gives a detailed account of Vasupal's side of the story—of death threats, harassment and the state of startup ventures in the country.

“I have realized that while we all want India to Start-up and Stand-up, the regulatory framework + corruption does not let one pick up after they fall. Instead it works overtime to bury them,” he wrote. 

Stayzilla had shut down its operations in February, citing an 'unviable business model'. The startup was embroiled in an ongoing dispute with Chennai-based advertising agency Jigsaw Solutions and Advertising, over 'severe deficiency of services' provided. According to media reports, Jigsaw Advertising was a vendor for Stayzilla since 2013 and had been providing marketing options such as public billboards and visibility points at airports. They claimed that the startup was not paying bills which had resulted in massive unpaid bills generated over a period of 12-13 months. 

Stayzilla had asked Jigsaw to take up the matter with the court. However, the advertising firm filed a criminal case against Vasupal accusing him of fraud and embezzlement of funds. They also claimed that Vasupal owed the firm Rs 1.72 crore. Meanwhile, Vasupal said in his blog post that it was Stayzilla, a private limited company, that owed the money to Jigsaw, and not him as a person.

"I don’t personally owe anybody money and I am wondering how can they get confused on such a basic matter as this was a clear civil case. I also pointed out that we have been asking the other company to take it to court if they felt they were wronged as we felt within our right," he wrote.

In his post, Vasupal highlighted two cases of harassment:

Case against landlord

Vasupal and his team had been working out of the office in HSR Layout, Bengaluru for roughly an year. By the end of January, the team informed the landlord, who also happens to be a politician, that the company was going through a rough patch. Since then, wrote Vasupal, the landlord has been threatening and harassing his staff. He even threatened to kill them with a revolver. Vasupal, has also posted a video in the blog, purportedly of the landlord abusing his staff in the Stayzilla office. Even outside the office, the landlord had become a regular source of trouble for his employees, insulting them at every turn and passing comments at his women staff. 

He claims to have filed an FIR with the police but they did not take any action. It was only after Vasupal's lawyer told the police that they had video evidence and they would go to the media, that they sent help. 

“When I got to the office I found 10 Policemen there to protect. 4 of them inside with the land lord, remaining outside. The Landlord was comfortably seated and the policemen were pleading with him to leave the premises, which he did after 2 & 1/2 hours of cajoling. I thanked the police and told them that I understood their compulsion," the blog said.

Case against media agency

Vasupal also wrote about being harassed by the media agency that filed the case against him. On March 9, a team of Bengaluru policemen, in mufti, arrived at Vasupal's house and demanded he report at the police station for questioning. They said a Chennai-based company had registered a complaint against him for cheating and intimidation. Later, it became evident that no FIR was officially filed. Though Vasupal's post does not mention 'Jigsaw Solutions' by name, media reports have confirmed the complainant company is Jigsaw.

“The Inspector then lay down the line stating that sending mufti policemen was the first way, the second way was that they will file an FIR and send uniformed policemen and have me arrested and jailed. After being taken aback for a split second, I realized that as long as I fear going to the Jail, I will always succumb to baseless threats. I then told him if it was my fate to go to jail, I will,” wrote Vasupal.

Later that day, the other co-founder Sachit Sanghi received a creepy-looking rag doll, with a photograph of his son, with a message “The most special way to say you care'.

A note at the end of the original post by Vasupal said he was taken to the magistrate at 10 pm though courts do not function after 6 pm. It said: “This shows how money and influence can supercede true and thorough investigation in a country which talks so much about start-ups and culture.”

Karnataka's IT minister Priyank Kharge said he is looking into the issue and getting in touch with ministers in Chennai.  

Meanwhile, with Vasupal's post showing up on social media, startup founders have come out in solidarity with Stayzilla, demanding release of Vasupal from jail. #ReleaseYogiNow is being used to speak up for the him.