On February 23, 2017, in an incident that shook the Indian start-up fraternity, Yogendra Vasupal (Vasupal), founder CEO of Stayzilla, a hotel aggregator and online travel advisory firm (OTA), was arrested on allegations of fraud . Jigsaw, an advertising firm, which was one of its creditors, alleged that Stayzilla had evaded payables to the tune of USD 0.27 million. Stayzilla, which was founded in the year 2007 and had convincingly expanded pan India with 25,000 rooms and more than 4000 properties, abruptly shut down its operations on March 14, 2017 .

Its extensive efforts to create a market as well as find new consumers took a toll on Stayzilla, compelling it to burn its cash at double the rate at which it generated revenues. The discount model that was rampant in the Indian hospitality industry made it tough for Stayzilla to recoup what it had put in. ..

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