Vasupal was arrested here late last night on charges of non-payment of dues to the advertisement agency, sources said.
He was produced before a local magistrate and is currently lodged in the Puzhal jail near the city, they said.
According to a mail shared by Sanchit Singhi, one of the Co-founders of the startup,- Yogendra who is fondly called Yogi, had gone missing since yesterday
"We need help. Yogi is missing. Last we think, we know is that he is at the station of Commissioner of Police, Egmore", he said.
Two cops from Mylapore Police station in Chennai met Yogi in Bengaluru, he said.
"He (Yogendra) asked them to leave stating that it is a civil matter and as they have no warrant, he cannot meet them", Singhi said.
Responding to the issue, TiE Chennai, representing the start ups in city, said the StartUp ecosystem in Tamil Nadu has taken a hit.
"The arrest of Yogesh, Founder of Stayzilla, perfectly shows the stiff resistance that the eco-system is displaying..", TiE Chennai, President, R Narayanan said in a statement.
Commenting on the incident, Karnataka IT Minister Priyank Kharge said he has taken the issue with his counterpart in Tamil Nadu.
"Spoke to Dr Manikandan, IT Minister (of Tamil Nadu) for his intervention in @stayzilla case, I am sure he will help if @YogiVasupal is on right side of law", Kharge said in a tweet.
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