Stayzilla.com raises $20 mn from Nexus Capital, Matrix Partners

Company plans to expand footprint into new towns and strengthen 'alternate stay' market by having more options for home-stays, guesthouses and serviced apartments

Chennai-based Inasra Technologies Pvt Ltd, which runs hotel service Stayzilla.com, has raised $20 million in a Series B funding from Nexus Capital and existing investor Matrix Partners. The company plans to use these funds to expand its footprint into new towns and cities and strengthen the 'alternate stay' market in India by bringing on board more options for home-stays, guesthouses and serviced apartments.

Stayzilla.com currently has on its portal 20,000 hotels, lodges, jungle lodges, boat houses, and home-stays across 4,000 towns in India. Unlike some other competitors, the website offers concierge service and does not allow travelers' reviews.

The company has set a target to reach over 8,000 towns and have 50,000 accommodations listed on its portal by the end of this year.

"The online hospitality industry has grown significantly over the last five years and travelers are seeking new and ingenious options for their stay requirements," Yogendra Vasupal, founder & chief executive officer of Stayzilla.com said. " We aim to expand the nascent "alternate stays" market in India which is in reality several times larger than the structured hotel reservations industry."

Founded by, Yogendra Vasupal, Rupal Yogendra and Sachit Singhi in 2005, the firm had earlier raised an undisclosed amount in series A funding in 2013 from Matrix Partners and the Indian Angels Network (IAN). In 2013, the company had also raised $5,00,000 as seed funding.