Matrix Partners India today announced that it has acquired a significant minority stake in Stayzilla.com, as the sole investor in the first institutional round of equity funding for the Company.
In March last year, StayZilla had raised $500,000 from the Indian Angel Network.
“I expect 40% of all hotel bookings in India to be done online within the next 5 years,” said Yogi Vasupal, co–founder and CEO of Stayzilla.com.
The startup operates an online platform to research and reserve “value hotels” in more than 750 cities across India. The capital will be used to strengthen the team, increase the startups network to over 15,000 hotels and enhance customer service.
Stayzilla is owned by Insara Technologies, a company setup in August 2005.
This year, the IAN has invested in 7 start-ups including an impact investment. In 2012, the angel network invested over US$ 11 million in 17 start-ups.
Investment firm Matrix Partners India with Rs 3,000 crore under management invests in companies targeting the Indian consumer market at the seed, early and early growth stages with initial investments ranging from Rs 1 crore to Rs 75 crore. Matrix has invested in companies like Quikr (online classifieds), Limeroad (social shopping for women), Ver Se (mobile utilitarian applications) and others.