Nexus Venture Partners Invest INR 7 Crores in MagicRooms, GDS Platform for Hotels

MagicRooms is a B2B hotel aggregator that distributes the inventory of hotels across travel agents as well as online channels (read our earlier coverage). magicrooms

Started by Niranjan Gupta (who earlier cofounded FlightRaja), MagicRooms enables hotel partners to distribute parity rate over different sales channels and acts as an interface to upload/manage their inventory.

Unlike Desiya and others who act as consolidators, magicrooms, works only as a distributor of inventory of hotels to three channels – 1. offline agents 2. online portals 3. corporates. This would mean that with a single point upload of inventory the hotel will reach the three most important channels that it serves.

The MagicRooms platform allows you to seamlessly integrate your hotel’s property management system (PMS) with travel agents, travel portals and large corporate customers – think of it as an ERP for Hotel industry that manages inventory on real time basis.

Nexus Venture Partners has invested INR 7 Crores in MagicRooms, which already has established partnership with 1500 agents and OTAs, including MMT and Cleartrip.

A platform like this solves one of the most pain point in the travel industry, i.e. of managing bookings on real time basis (how many times have you faced this issue that even though you see hotel rooms available on the web and when you call them, it turns out that the hotel is 100% booked).

MagicRooms is an internet-enabled global distribution system for hotel rooms. By integrating with the hotel’s PMS (property management system), it allows seamless real-time distribution of room inventory and rates in seconds. End-users include travel portals and websites, travel agents, and corporate houses.

As far as travel agents/OTAs are concerned, they have direct real time access to hotel inventory and the contracted deals.

We profiled MagicRooms around a year back and also did an interview with Niranjan Gupta on Hotel Aggregation Business in India.

As the co-founder of flightraja, we decided to remove the pain in the process of air ticketing as LCC came into existence and forced agents to visit their websites for booking. Thus, the agents had to visit each website to check fares and make booking. Thus, flightraja was born to bring all airlines in single screen for instant ticketing and  it is the leader in the B2B segment today.

Similarly, agents continue to suffer a very long process to make domestic hotel booking. An average booking process time is 1-2 days to complete a transaction. First the agent has to call the hotels, get tariff, make booking, send DD/cheque and get hotel voucher.

The platform has mirrored the present process that takes place between agent and hotel and has brought down the time taken from 1-2 days to 60 seconds, guaranteed. It has  blocking facility, holiday packages module, variable pricing at hotel discretion, and most importantly, instant confirmation, and generation of hotel voucher instantly with the agent name on it prominently.

The offline/unstructured industry, as always provides a big opportunity in India.

Updated: Here is the official press release

MagicRooms (, India’s first Hotel GDS (Global Distribution System), based out of Bangalore, announced that it has received a Rs 7 crore investment from Nexus Venture Partners, India’s leading Venture Capital firm.

The MagicRooms internet platform integrates all existing hotel property management systems (PMS) that brings together all available room inventories across all hotels in India onto a single window. In a significant development, India’s leading online travel site, has signed up to become a MagicRooms customer.

Speaking about the funding, Mr Niranjan Gupta, Founder & CEO, MagicRooms Solutions, said,

“MagicRooms will change the way hotel rooms are booked online. The funding will help MagicRooms build infrastructure and increase our marketing efforts. We are thrilled to work with the team at Nexus Venture Partners who have deep experience in building internet companies”.

Suvir Sujan of Nexus Venture Partners who will join the MagicRooms Solutions board, said, “Niranjan is a strong entrepreneur with his pulse on the travel industry. MagicRooms has the potential to redefine hotel bookings in India”.

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