Stayzilla Business model - bucketed into 3categories

• Launched: 2005
• Founders: Yogendra Vasupal, 1 Structured
2, 3 and 4-star hotels – mainly urban areas
Rupal Yogendra, Sachit Singhi
• Category: Hotel aggregator
Unstructured
• Headquarters: Bengaluru
2 1-star or 0-Star hotels, lodges – mainly rural areas

3 Alternative Stay
Homestays, hostels and bed & breakfasts – mainly for leisure

Humble beginnings Share of business Funding in Mn $

200
• Started as Inasra – online travel
agency for hotel bookings
25% Structured 150
• pivoted to hotel aggregator mo
del in 2010 100
• Main investors - Matrix Partners Unstructured
and Nexus Ventures 50
• Major rivals - Makemytrip, Yatra
, Goibibo, Expedia and Cleartrip 57% Alternative 0

18% stay
Sources Stayzilla OYO
• https://hbr.org Not enough capital to sustain a high
Focus was needed on Alternative stays
• https://yourstory.com
• https://blog.stayzilla.com
cost and low revenue model
 What went wrong?
Inability to Inability to
create a local expand
network effect quickly and
cost
effectively

Disrupted Excessive Inefficient High cost of

cash flow and focus on GMV collection of operation and
no working - no Plan B receivables(~ low revenue
capital when funding Rs7 crore)
went dry
Ignored Discounting-based growth of Possibly emotional leadership – no change in
competitors failing strategy – unhealthy relationship with
hotel partners
Focus was on marketing ROI than to get Lack of good exit strategy when
in a position of bargain with opportunities things went south
on hand
 What was required?
Efficient collection of Know your customers
Cooperation And Specialization receivables – avoid – discounts to capture
Partnerships with competitors (also struggling) cash flow crunch market share
Communities where
room owners can
Focus on supply side network
Options limited in India (rural and tourist
locations) – encourage owners to open up their
idle homes or extra rooms
MoUs with states

MoUs to exploit the high need for unstructured

and alternative stay
Trigger network effect
Owners, customers and Stayzilla benefits
Make travel Social
Use of Facebook Connect, twitter- users can
see friends who stayed and their reviews
Stay updated – upi, quick and efficient complaint
collaboration with mobile redressal systems – edge over
wallets competitors
Sources
• https://yourstory.com
• https://inc42.com
• https://www.techinasia.com
• https://digit.hbs.org
• https://yourstory.com