Stayzilla Suspends Ops, to Reboot with a ‘Different Business Model’
Co didn’t focus on fundamentals like cash flow & working capital: Co-founder
timesinternet.in Bengaluru: Online homestay and alternate stay aggregator Stayzilla has suspended its operations and will reboot “with a different business model”, said cofounder Yogendra Vasupal.
“We would be bringing to a halt the operations of Stayzilla in its current form, and looking to reboot it with a different business model,” said Vasupal in an official blogpost.
Started in 2007 by Vasupal, Sachit Singhi and Rupal Yogendra, Stayzilla started off by offering budget hotel accommodation to travellers but shifted its focus to home stays early last year.
It claimed to offer travellers more than 55,000 stay options across 4,500 towns in the country and also had tie-ups with seven state tourism departments including Gujarat, Andhra Pradesh, Madhya Pradesh, Uttarakhand, Punjab, Odisha, Chhattisgarh and Assam.
Stayzilla had raised a total of around $33 million in funding from investors like Nexus Venture Partners and Matrix Partners across multiple rounds. It was previously headquartered in Chennai and had recently consolidated its product and engineering teams in Bengaluru.
“The initial seven years were all about having negative working capital, positive cash flow and a sustained ability to fund our own growth. Those were the only metrics we tracked. In the last 3-4 years, though, I can honestly state that somewhere I lost my path. I started treasuring GMV (gross merchandise value), room-nights and other ‘vanity’ metrics instead of the fundamentals of cash flow and working capital,” added Vasupal in the blog post.
This move comes just a month after two of India’s largest travel booking portals Ibibo Group and MakeMyTrip completed their merger last month. Other players in the segment include Yatra which started trading on Nasdaq after a reverse merger last year and SoftBankbacked OYO Rooms.