On Tuesday, Yogendra Vasupal, the CEO and the cofounder of the well-known startup company “Stayzilla”, has been arrested on the charges of fraud filed by an advertising company. The company was founded by Mr. Yogendra, Mrs. Rupal Yogendra along with Sachit Singhi as Insra in the year 2005 and was rebranded as “Stayzilla” in the year 2010. It acted as a marketplace for homestays and also for alternate stays in India. It catered for both travellers as well as homeowners who had been searching for unique and differentiated stay experiences. Though Stayzilla had the first-mover advantage in the marketplace, according to Yogendra Vasupal the company had to deal with high costs because of its numerous pitfalls. Mr. Vasupal stated that, the mismatch of supply as well as demand which did not exist eighteen months back and creation of new markets so as to expand the business quickly and effectively are a couple of reasons which led to the downfall and the failure of the startu...