Investors could have veered Stayzilla towards mediation, says IVCA chairman

Founder Yogendra Vasupal was arrested for non-payment of dues to Jigsaw Advertising and Solutions

Indian Private Equity and Venture Capital Association (IVCA) Chairman Gopal Srinivasan Sunday said the institutional and angel investors could have veered Stayzilla towards mediation, rather than take an intransigent position of insisting on a settlement or apology, in landing the dispute in right direction.

"There were options available which could have been used in landing the dispute in the right direction.. The provisions of Bankruptcy Code could have been taken advantage of," Srinivasan told PTI in an email interview.

The institutional and angel investors could have veered the company (Stayzilla) towards mediation, rather than take an intransigent position of insisting on a settlement or apology before even exploring the process," he said.

He made the remark when asked whether the institutional investors played their role appropriately or not.

The arrest of Stayzilla founder Yogendra Vasupal for non-payment of dues to Jigsaw Advertising and Solutions, a vendor, had stirred a hornet's nest in the entire startup ecosystem, after both the parties traded allegations against each other.

Srinivasan, who is also TVS Capital Fund Head, further said the case has been distorted by rampant over-reporting after founders and ecosystem members took to press and twitter indiscriminately, besides the creditor acted very aggressively.

"The creditor as well, in their anxiety, acted very aggressively?... It seems as though those who made the most noise, got all the attention, regardless of the facts or content... Perhaps this is common is any such situation, which gets media over coverage," Indian Private Equity and Venture Capital Association Chairman said.