The Indian Angel Network has invested Rs 2.5 crore in Chennai-based StayZilla.com, an online hotel room booking firm.
StayZilla offers value-stays through an inventory of 4,000 hotels in 600 towns in the country.
Of this, properties in over 350 towns can only be booked through this site. StayZilla gets a commission on each room booked through its site.
According to Mr Yogendra Vasupal, Founder, StayZilla, the investment will be used to add more hotels to be booked through the site, expand to more towns and improve the technology platform.
The company plans to cover 300 more towns in the next six months.
StayZilla, founded in 2005, has 22 employees now.
For the Indian Angel Network, a national network of individuals investing in start-ups and early stage ventures, this is the first investment in Chennai.
The IAN expects travel to tier-II and III towns to increase and StayZilla with its good inventory of hotel rooms will stand to benefit, according to Mr Ravi Krishnappa of IAN.
The room occupancy in the smaller towns is high across the board – be it a lodge or a two-star hotel, he adds.