India’s homestay aggregator Stayzilla shutdown operations,to reboot with different business model
New Delhi, Feb 24:India’s biggest homestay and alternate stay aggregators, Stayzilla, has suspended operations. Coming a day after Snapdeal’s massive restructuring, it is once again an indication of the troubles that India’s consumer internet ventures are going through as funding slows. Stayzilla said it is looking to reboot with a different business model.
“This has been one of the toughest decisions that I have taken so far but it is the right thing to do. The hardest part is saying goodbye to a perfect team that has accomplished a lot by putting homestays on the map of India,” wrote co-founder Yogendra Vasupal in a blog post on the Stayzilla website on Thursday.
“I am the most fortunate to have had such a team on my side at this juncture. Whatever and how much ever I write about them is not going to do justice to their commitment. But try, I must!” he said.
Stayzilla, founded in 2005 by Vasupal, Rupal Yogendra and Sanchit Singhi under the name Inasra, was rebranded as Stayzilla in 2010. It raised $34 million in funding from investors including Matrix Partners and Nexus Venture Partners. Stayzilla had more than 55,000 stay options across 4,500 towns in the country that catered to both homeowners and travellers looking for non-hotel-like stay experiences. It has regional offices in Delhi NCR, Kolkata, Mumbai and Chennai.