Stayzilla, an online aggregator for accommodation, on Thursday announced it has raised $20 million in a Series B round of funding from Nexus Capital and existing investor Matrix Partners. The company said the funds would be used to expand the alternative stay market — room sharing or homestays — by driving increased seller adoption.
According to the company, the growth in demand is often constrained by lack of supply and it is striving to expand the business into new towns. The company has more than 23,000 rooms on its platform and fetches Rs 3,300 on an average per booking. Stayzilla, which has presence in 1,200 cities, plans to expand the number of rooms to 30,000 in the next couple of months. While 36% of the company’s inventory comprises alternative stays, half the demand comes from this segment. Yogendra Vasupal, founder and CEO, Stayzilla, said: “This investment will further help us expand exponentially. We intend to tap into newer destinations to reach over 8,000 towns and 50,000 accommodations by the end of the year. ”