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India’s Stayzilla Raises $20M For Its Hybrid Hotel/Airbnb-Like Booking Service

Stayzilla, an India-based service that combines regular hotel bookings with short-term, Airbnb-style rentals, has announced a $20 million Series B round to grow its business.
The round, details of which leaked last week, was led byNexus Venture Partners and existing investor Matrix Partners. Stayzilla, which was founded in 2010, nabbed an undisclosed Series A round in October 2013 having closed a $500,000 seed-round in 2012.

Stayzilla is an interesting beast.The overall focus is on letting users book accommodation across India for a stay of up to one month. The startup— which makes money via a varying rate of commission on each booking — initially went after traditional stays, such as hotels and guest houses, but hit a growth spurt when it eased up on how it managed ‘alternative’ accommodation selection — principally peer-to-peer rentals and homestays.
Stayzilla CEO and co-founder Yogendra Vasupal told TechCrunch that the service had around 22,000 rooms — 36 percent of which are alternative — across 4,000 towns, as of December 2014. Back in
January 2014, he said, alternative rooms represented just 5 percent of its then 5,000 room catalog. With more options to choose from, revenue over that period increased seven-fold, as the company processed around $2.8 million in bookings in December thanks to the surge in non-traditional rooms.