Bengaluru-based hourly hotel booking company, MiStay, has raised an undisclosed amount of investment from ah! Ventures and other investors in a funding round, led by Hyderabad-based ex-entrepreneur Sumit Nagpal.
The startup said it will utilise the funds to grow the leadership team and to build up the brand.
Founded in 2016 by IIT Madras alumni Sandeep Jaiswal and Pranav Prabhakar, MiStay previously raised its first seed round in late 2017. Later, the company pivoted from the initial focus on the B2B corporate market to the consumer market in mid-2018. Since then, MiStay claims to have grown 5 times and hit operational profitability in June this year.
MiStay is currently operational in 100 cities with around 1500 hotel partners. The partner hotels of the company include many premium hotel brands such as The Park, Radisson, Holiday Inn as well as midscale hotel chains such as Lemon Tree, Mango Hotels, Mint Hotels, 1589 Hotels, and Treebo among others.
Sandeep Jaiswal, Co-Founder and CEO, MiStay, said, “Travellers today no longer want to plan their trip based on the hotels’ check-in time. The hotel industry is poised to transform to meet these evolving travellers’ needs. This transition, however, requires disrupting the age-old technological ecosystem in the hotel industry and raising operational capabilities of hotels. We are building the entire ecosystem ground up to enable the flexible hotel stay and be the leader in this market.”
Pranav Prabhakar, the cofounder and CTO of MiStay, also mentioned that the micro-stay model brings a unique revenue optimisation opportunity for hotels. MiStay is also expected to help hotels to realise their full potential by unlocking the value in hotel inventory during the hours, which otherwise remains unutilized.
Abhijeet Kumar, Founding Partner at ah! Ventures, said, “Hotel booking is a very large market and the unique approach of MiStay for inventory optimisation will change the way the hotel industry operates.”
According to the startup, the average hotel occupancy rate in India stands at around 65 percent, thus the unsold hotel rooms constitute around $6 billion of missed revenue opportunity for hotels. MiStay creates a new demand of customers who require hotels with early check-in, short-stay or day-use rooms, which hotels can tap into to maximise their occupancy and revenue, it added.
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