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Homestay startup Stayzilla up for grabs

Started in 2006 by Yogendra Vasupal, Sachit Sanghi and Rupal Yogendra, Stayzilla — backed by marquee investors Matrix Partners and Nexus Ventures Partners — folded up in February 2017.

, TNN|
May 15, 2018, 09.40 AM IST
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ET Online
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(This story originally appeared in on May 15, 2018)
CHENNAI: The resolution professional (RP) has sought expression of interest (EoI), or initial plans, from bidders to revive the beleaguered homestay startup Stayzilla.

Started in 2006 by Yogendra Vasupal, Sachit Sanghi and Rupal Yogendra, Stayzilla — backed by marquee investors Matrix Partners and Nexus Ventures Partners — folded up in February 2017. An ugly spat followed between its founder Vasupal and vendor, Jig-Saw Solutions, an advertisement agency, over unpaid dues of Rs 1.7 crore for which Jigsaw initiated criminal proceedings. The vendor then dragged Stayzilla, to the NCLT seeking its liquidation. After multiple legal wrangles, the RP has now started the process to find a bidder.

Vasupal told TOI that he will start reaching out to investors and other potential bidders to bid for the asset aggressively. “I have had some relationship within the startup ecosystem and will reach out to everyone. I will welcome their interest and make them understand the value of the company. It is up to the resolution applicant now. We can only assist them in understanding how Stayzilla can be utilised,” said Vasupal.

“The company has not been operational for over a year. There are assets, the brand and a pending patent. It is up to the resolution applicant as to how they would look at Stayzilla fitting within their existing boutique of brands,” Vasupal added.

Karthigeyan Srinivasan — the RP — has specified that the bidder should have a minimum net worth of Rs 50 crore and have the ability to infuse cash of Rs 20 crore. The EoIs must be in by May 16.

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