Stayzilla shut its business after it failed to keep up with rising competition
Stayzilla, an alternate stay aggregator shut its business after it failed to keep up with rising competition from MakeMyTrip and GoIbibo. It was once refered as one of the successful companies which has emerged from Chennai.
Here is a look at how the company evolved:
In July 2005, they launched Inasra Technologies to work on business model in the sector with the help of technology. While it was able to scale up to over 200 cities in a few years, the challenges were to ensure that the customers are guaranteed to get the room at the hotel, even though the booking has been confirmed through the technology platform and the growing competition in the travel booking space. It stopped service for a short while to improve its services, but the challenges continued.
In 2010, Inasra.com was rebranded as Stayzilla, as the company wanted to provide alternate stay in all "zillas" (districts) of the country. The market size then was $7-8 billion, but the segment was highly fragmented.
In March, 2012, the company raised a seed funding of $500,000 from Indian Angel Network. The funds were expected to be used for marketing. The company then had around 4,000 hotels listed in its platform in across 600 cities. The fund-raising was expected to help it to expand in more cities and for an aggressive growth.
In 2010, Inasra.com was rebranded as Stayzilla, as the company wanted to provide alternate stay in all "zillas" (districts) of the country. The market size then was $7-8 billion, but the segment was highly fragmented.
In March, 2012, the company raised a seed funding of $500,000 from Indian Angel Network. The funds were expected to be used for marketing. The company then had around 4,000 hotels listed in its platform in across 600 cities. The fund-raising was expected to help it to expand in more cities and for an aggressive growth.
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