Stayzilla, the Chennai-based homestay aggregator, which is locked in a straight battle with California-based Airbnb for a stronghold on the homestay market, has reported an over six-fold rise in net loss at R19.62 crore for the year ended March 2015. In the previous year, its net losses stood at R3.04 crore.
The company has seen its revenues grow 166% to R4.21 crore during 2014-15 as against R1.58 crore in the previous year, according to a filing with the Registrar of Companies. The company is yet to file financial numbers for the year ended March 2016.
Stayzilla, backed by venture funds like Matrix Partners and Nexus Venture Partners, has spent a considerable amount in building the largest marketplace for homestays online. “Our business is observing growth as more and more Indian customers are coming online,” Yogendra Vasupal, co-founder and chief executive officer, Inasra Technologies that operates Stayzilla, told FE. “We are burning around $500,000 a month and are working towards reducing this,” he added.
Stayzilla was founded by Yogendra Vasupal, Sachit Singhi and Rupal Yogendra in 2010. Stayzilla competes with OYO Rooms and, MakeMyTrip among others in the budget hotel booking segment and Airbnb of the US, which entered India in 2011, in the homestay market. It currently boasts of homestay inventory of 33,000 rooms and presence in 1,000 cities. In total, it has 80,000 rooms that includes budget hotels and alternative stay.
The company, which is armed with a fresh investment of $13.5 million from its investors earlier this year, is unveiling an aggressive growth plan for the next couple of years. “By end of this year, we want to grow aggressively across the country by expanding our inventory to 100,000 homestay rooms. We will add more rooms in all the cities we are present as of now. By far, we have the most comprehensive presence in 1,000 cities between Tier-1 and Tier-4 cities,” Vasupal said.