Stayzilla suspends operations, to reboot with new business model
BENGALURU: Online homestay and alternate stay aggregator Stayzilla has suspended its operations and will reboot "with a different business model", said co-founder and chief executive 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 a blog post.
Started in 2007 by Vasupal, Sachit Singhi and Rupal Yogendra, Stayzilla started off by offering budget hotel accomodation to travellers but shifted focus to home stays last year.
It claimed to offer travellers more than 55,000 stay options across 4,500 towns. Stayzilla had raised around $33 million in funding from Nexus Venture Partners and Matrix Partners across multiple rounds.
"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, room-nights and other ‘vanity’ metrics instead of the fundamentals of cash flow and working capital," Vasupal said in the blog.
"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 a blog post.
Started in 2007 by Vasupal, Sachit Singhi and Rupal Yogendra, Stayzilla started off by offering budget hotel accomodation to travellers but shifted focus to home stays last year.
It claimed to offer travellers more than 55,000 stay options across 4,500 towns. Stayzilla had raised around $33 million in funding from Nexus Venture Partners and Matrix Partners across multiple rounds.
"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, room-nights and other ‘vanity’ metrics instead of the fundamentals of cash flow and working capital," Vasupal said in the blog.
