Hotel bookings app RoomsTonite gets $1.5M in angel funding
RoomsTonite, a mobile app for last-minute hotel bookings, has raised $1.5 million (Rs 10 crore) in seed funding from a bunch of angel investors. Lashit Sanghvi, co-founder of Alchemy Capital; Nikhil Vora, founder of Sixth Sense Ventures; Venkat Vardhan, promoter of DNA Networks; Mohammed Bin Abdul Rehman Al Khalifa, chairman of Caravan Group; and Ralph Berezan of Berezan Group of Canada invested in this round.
Vissal Mathew and Balamurali Krishna of IDS Software also put money in RoomsTonite, said Suresh John, founder and CEO. The company plans to use the funds to strengthen its technology infrastructure, improve customer service and sign up more hotels.
RoomsTonite, run by Bangalore-based RoomsTonite eBookings Pvt Ltd, offers last-minute hotel rooms at discounted rates for users. Its app enables users to book hotels for the same day or up to three days and nights including the booking day. The company has tied up with nearly 4,000 hotels across 325 locations.
“The big pain point most hotels face is to sell their unsold rooms. The average occupancy rate across hotels in the country is somewhere between 50 per cent and 60 per cent,” John said. “We look to access and distribute the 40 per cent of unsold rooms to help hotels find an additional revenue source while offering customers a great deal in last-minute bookings.”
The company has expanded its services to the international market recently with vacation homes in Thailand and Indonesia. It plans to enter West Asian markets shortly. RoomsTonite is also in talks with a couple of institutional investors to raise $7 million to $10 million in Series A funding for expansion.