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Udyamee

Stealth • 6m

𝗪𝗵𝗮𝘁 𝘄𝗲𝗻𝘁 𝘄𝗿𝗼𝗻𝗴: 𝗪𝗶𝘁𝗵 𝗦𝘁𝗮𝘆𝘇𝗶𝗹𝗹𝗮?🏚️ India had Stayzilla before the world got Airbnb and Oyo. Founded in 2005 initially as Inasra, it was later rebranded as Stayzilla in 2010 in an effort to expand to all districts (Zillas). It was an online platform for booking homestays, alternative accommodations, and hotels across the country. After raising almost $34 million in funding, the company had over 15,000 listed properties across 4,500 towns in India by 2016 before shutting down in 2017. So what went wrong? • Early Mover Disadvantages: It was before the internet in India, where educating the market and building infra was tough. • Lack of Profitability: It was a cash-burning machine. •Operational Issues: The company struggled with managing its network of suppliers. • Legal Troubles: In 2017, the founder was arrested in a fraud case filed by one of its vendors. The End: After the arrest of its founder and due to heavy losses, Stayzilla shut down in 2017

14 replies21 likes

Replies (14)

Sathya Saagar

Stealth • 6m

Also, the naming itself is too difficult to spread in the Word-of-Mouth marketing.. That's a big disadvantage for it to not get popular and thereby to become profitable..

0 replies2 likes

Havish Gupta

Stealth • 6m

Great covering bro.

1 replies2 likes

Anonymous 3

Stealth • 6m

The combination of being too early in the market and the intense pressure to scale probably stretched them too thin. If they had focused on building a more robust foundation before expanding, they might have been able to handle the operational and financial challenges better.

1 replies1 like

Anonymous 2

Stealth • 6m

Managing a large network of suppliers is no small feat, and it sounds like operational issues were a major hurdle. Ensuring consistency and reliability across thousands of properties must have been incredibly challenging.

1 replies1 like

LIKHITH

Stealth • 6m

Founder did fraud?

1 replies1 like

Jaswanth Jegan

Stealth • 6m

Early mover disadvantage 💔

1 replies1 like

Anonymous 1

Stealth • 6m

Great post udyamee. Loved reading this.

1 replies1 like

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