StayZilla, an online aggregator of budget hotels and homestays, has raised $13 million in its Series C round of funding from existing investors Matrix Partners and Nexus Ventures.
As per the documents filed with Registrar of Companies, the funding round was split into three tranches of $8.8 million, $1.9 million and $2.4 million, between November 2015 and March 2016.
The raised funding will be used by the company to improve its product and technology and also for the marketing initiatives. Earlier, in February 2015, the company had raised close to $20 million from Nexus Venture Partners and Matrix Partners.
The company is also increasing its focus on home and alternative stays, which was launched last year and now contributes to over 40% of the bookings compared to 6% last September.
Founded by Yogendra Vasupal, Sachit Singhi and Rupal Yogendra, Stayzilla is a platform for verified homestays and alternate stays. It has over 55,000 homestay and alternate stay options across 4000 towns in India. It caters to both home owners and travelers looking for differentiated, unique stay experiences.
In this space, the company is competing against the likes of budget hotel accommodation service provider Oyo Rooms and online travel agencies (OTAs) including MakeMyTrip, Goibibo and Yatra as well as home rental provider Airbnb.
Couple of days ago, in order to strengthen its senior level management, StayZilla hired Pankaj Gupta, former Twitter executives, as Chief Product Officer and President of Technology.