May 13, 2016: Stayzilla, an online platform to research and reserve value hotels across India has raised over $13 million in a Series C round of funding from existing investors Matrix Partners and Nexus Ventures, according to documents filed with the Registrar of Companies.
The funding round was split into three tranches of $8.8 million (Rs.58.5 crore), $1.9 million (Rs.13 crore) and $2.4 million (Rs.16.3 crore), between November 2015 and March 2016.
Start-up sector has led to more internal funding in the company due to slowdown in the investment which is run by Inasra Technologies Pvt. Ltd and competes with budget hotel accommodation service provider Oyo Rooms and online travel agencies (OTAs) including MakeMyTrip, Goibibo and Yatra as well as home rental provider Airbnb.
Avnish Bajaj, managing director of Matrix Partners in an email stated that it is the fastest way to get funded and is an important driver of the business in a poor funding environment.
The company last raised close to $20 million from Nexus Venture Partners and Matrix Partners in February 2015.Investors are picking their bets selectively and current investment marks the cautious venture capital funding market.
Incepted by Yogendra Vasupal, Sachit Singhi and Rupal yogendra, Stayzilla which started off by offering travelers stay options in budget hotels, last year ventured into home stay, connecting travelers with homeowners with spare accommodation in their houses.
According to its website, it currently offers 30,000 stay options, including hotels, lodges, homestays and guest houses across 4,500 cities.
Stayzilla facilitates owners to list their properties through the website by filling in basic details such as type of the property and details of people staying there. It helps homeowners to choose their guests on the basis of common interests and social, educational and professional connections.
“The funds garnered will be utilized to improve product and technology and marketing initiatives for the alternate stay business,” said Bajaj.
In the last year, travel and accommodations space has seen more action. Nathan Blecharczyk, co-founder and chief technology officer of Airbnb in his recent visit to India, said that by 2020, the Indian travel market is expected to become worth $40 billion, adding India has become one of Airbnb’s fastest growing markets in the world.
Travel and accommodation space has seen more action in the last one year. In his recent visit to India, Nathan Blecharczyk, co-founder and chief technology officer of Airbnb, said that by 2020, the Indian travel market is expected to become worth $40 billion, adding India has become one of Airbnb’s fastest growing markets in the world.
Makemytrip, Goibibo and Yatra recently ventured into budget hotel business putting them in direct competition with Oyo Rooms and Zo Rooms. OTAs then delisted these start-ups from their platforms, indicating their ambition to build a separate budget hotel business.
Non-hotel alternatives such as dharamsalas, homestays and bed-and-breakfast establishments will be the next target of Makemytrip while Yatra launched alternate stays last year.
MakeMyTrip also announced a $180 million fund-raising from China’s Ctrip.com International Ltd in January. It was followed up by South African media company Naspers Group’s announcement to invest $250 million in Ibibo Group, which owns and operates Goibibo in February.