Chennai based StayZilla.com gets IAN investment
| March 15,2012 03:38 pm IST
Indian Angel Network (IAN), a national network of business angels investing in start-ups and early stage ventures, has invested in a Chennai-based stay only specialist, online booking firm StayZilla.com
com offers value-stays in any district (Zilla) through an inventory of 4000 hotels in 600 towns - Tier I, II and III - in India, of which properties in over 350 towns can only be booked through this site.
With this investment, Indian Angel Network, the most nimble network of angels, has spread its footprint to Chennai. StayZilla.com, is focused on booking hotel rooms online, offering the widest range of accommodation.
IAN has invested half a million dollars into the company, which will help StayZilla to expand its network of properties, upgrade its technology platform and build a strong foundation for a scalable business.
IAN investor Ravi Krishnappa who led the IAN investment in StayZilla said, We are excited about StayZillas online booking technology and strong relationships with 4000 properties in 600 towns in India.
StayZillas technology is unique and makes a differentiated product offering. Yogi Vasupal and his co-founders, Sachit Singhi and Rupal Surana form an excellent team that understands the nuances of the market and has developed strong relationships with the hotels, adds Krishnappa explaining IANs faith in the StayZilla team.
Stayzilla is focused on building the domestic business and allowing customers, through the StayZilla.com platform, to book room. The value stays accommodation ranges from a value suite in a 3-Star property in a metro city to a forest lodge in Kanha to a houseboat in Srinagar to a room in religious town--from Ajmer to Shirdi and Tirupati to Velankanni--among hundreds of options
Dwelling on the growth prospects of StayZilla, IAN investor member, Amitabh Shrivastava who also led the deal said, Domestic travel to and from Tier I, II and III towns, driven by increased family mobility, is witnessing exponential growth. Currently, the stay-only market in smaller cities, serviced by local travel agents, lacks technology to support online bookings. Additionally, most competitors dont offer a choice as wide as StayZilla.
Online booking market for accommodation is almost completely untapped with just 1% of the hotel accommodation getting booked online. This presents a huge opportunity for StayZilla, adds Shrivastava.
Investors have continuously been excited by investment opportunities being brought on the IAN platform, and Stayzilla was no different. It received a similar interest from this active investor group.
Yogi Vasupal, founder of StayZilla says, We approached IAN because of its member network of successful entrepreneurs with knowledge of diverse market segments. IAN members open doors to their network of connections for StayZilla.
As members on the StayZilla board, Amitabh Shrivastava and Ravi Krishnappa helped sharpen StayZillas go-to-market strategy as also operations, adds Yogi.
Online booking by StayZilla is hassle-free since most hotels dont have the resources and knowhow to manage a website and online transaction handling. Its an opportunity which needs a high level of execution focus which StayZilla is geared for.
By offering the widest range of accommodation, suiting the guests budget, StayZilla saves the hassle of hunting for a room. StayZilla not only lists the properties but leverages its relationship to guarantee a room in a property.
StayZillas focus on 'Value stay' market will help increase its market-share in Tier I / II / III cities as well as mind-share of the travelers.