RoomsTonite shutting shop after Stayzilla debacle

CHENNAI: Its a bad summer for the hospitality trade. the Bengaluru-based online hotel aggregator, RoomsTonite is learnt to be downing shutters , shortly after Chennai-based Stayzilla shut shop. The hotel booking app RoomsTonite, raised $1.5 million in December 2015, and was started by serial entrepreneuer and IDS Solutions chairman Suresh John.
Founded in June 2014, the company started having trouble with its cashflows since last August. "Some of the top executives were shifted to IDS Solutions early September. But many employees were asked to leave in February with one month's salary, " said a former employee.
RoomsTonite offered budget, premium and luxury hotel rooms at a discount to its app users and made its revenues from the commissions from bookings. The app also offered users the choice of home stays and vacation rooms and touted itself as "the perfect solution for last-minute, hassle-free bookings."
Repeated attempts to reach the company turned futile.
Last year, the company tried to raise money, failing which the decision was taken to shut down, said the source. Staff said though senior management did not communicate the changes with them, some employees had already started looking for other jobs.
"First, you couldn't download the RoomsTonite mobile app on Apple. Then it wasn't available on Google Play. Staffers were definitely panicky," said the source.
Coming so close on the heels of Stayzilla's shut down, what does it mean for the space? "The accommodation space in India is large, exciting; with lots of opportunities. Different companies adopt different business models to tap into this space. When some of them don't work out, it's unfortunate. But that should not be taken as a reflection of the space," said Sidharth Gupta, co-founder, Treebo Hotels, a competitor for RoomsTonite. Treebo raised Rs 112 crore in funding last July.
 
Shoot

Trending News

Mumbai: Now, Uber fare to factor in fuel rate fluctuation

Amazon, Flipkart under ED probe for alleged violation of FDI norms

Paytm sets up wholesale entity for ecomm business like rivals

Uber posts $1Bn loss in quarter as growth in bookings slows

Infosys to open Texas hub, hire 500 Americans by 2020

Swiggy's $300M secondary share sale to be the fastest liquidity event for growth-stage investors

Over half of billion-dollar startups in US are founded by immigrants

Apple to tighten e-commerce play in India post Amazon deal

Amazon Wholesale's FY18 revenue up 73% due to B2B focus

Twitter cuts suspect users from follower counts again

Payments majors Visa, Mastercard and American Express may be taxed on India income

IRCTC wakes up after 2 years to fix its security bug

Alibaba's on-demand online services unit raises $4Bn, now valued at $30Bn: Sources

Twitter is looking to take the conversation to Bharat next

Bharat going digital for payments

Reserve Bank of India plans payments watchdog

Apple not in settlement talks 'at any level' with Qualcomm: Report

Payment cos witness growing adoption of digital gold during festival season

Meesho raises $50M from DST, Shunwei, RPS Ventures

BMTC will soon allow commuters to buy tickets using digital wallets

Flipkart, Amazon India register significant user base growth during the festive month

Rural e-commerce market a $10b-$12b opportunity in the next four years

Amazon goes shopping for Future Retail, to buy 9.5% stake

Walmart’s veggie-tracking technology: Use Blockchain

India's oldest cryptocurrency exchange Zebpay shuts down

Apple's growth in India is becoming a challenge: Tim Cook

Google India tax row: $2 billion remittance in 5 years may add to tech giants load

Want WhatsApp to cooperate with law enforcement agencies: RS Prasad

Flipkart acquisition won’t hit Walmart India plans

Twitter India earnings fall 14% in 2017-18

Alibaba to help manufacturers solve future problems with technology: Jack Ma

Ola likely to hit $5.5Bn valuation with Steadview's $100M investment

Flipkart India losses widen to Rs 2,063.8 crore in FY18

Google to give away USD 25 million to fund humane AI projects

Swiggy FY18 revenues surge 232% to Rs 442 Cr, inches closer to Zomato

Paytm's losses go up 270% to Rs 3,393 Cr driven by e-tail business

Flipkart told to stop selling products under MarQ private label

Once considered as rivals, Ola and Uber could now be saviour of autorickshaws

HCL Tech to hire nearly 30,000 people, applies for 640 H-1B visas

Zensar Technologies Q2 profit up 49% at Rs 93 crore

Facebook beyond Facebook? Instagram, Messenger & WhatsApp step up

Paytm Mall expects fashion, grocery to drive its growth

HDFC Bank Q2 net profit climbs 21% to Rs 5,005 crore on robust core income

Zomato, Swiggy and UberEats double salaries of delivery staff in some cities

Funding Galore: Indian Startup Funding Of The Week

“Over $3 Bn Was Invested Across 372 Deals With 54 Mergers & Acquisitions”

E-commerce players brace for big battle over online pharma

Walmart signs 5 year Cloud tech partnership with Microsoft

Flipkart adds recharge, travel tabs

Unhappy with WhatsApp reply, Indian govt may send second notice

Cars24 closes $50M funding to fuel its expansion plans

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities