Paytm launches hotel reservation with the acquisition of NightStay
New Delhi: Digital payment company Paytm on Tuesday announced it has acquired Delhi-based hotel reservation platform NightStay for an undisclosed amount, entering the crowded hospitality segment.
Paytm (run by One 97 Communications Pvt Ltd) affected ??500 crore to invest in scaling up operations in the hotel industry and will look to expand its travel services portfolio, according to a company statement.
Paytm was in talks to acquire NightStay for an estimated $ 20 million, according to a Times of India report.
As part of the deal, Nasr Khan, Founder and CEO of NightStay, will lead the hotel reservations category at Paytm.
This is Paytm’s second foray into the hotel industry after it failed to gain enough traction in the business in 2015 over its travel bookings vertical. During the first launch, Nitin Misra, Vice President of Paytm, led the travel and reservation business and now leads the loans and payments segment.
The company had previously partnered with budget and luxury hotel partners including Treebo Hotel, Bloomrooms, Sarovar and Ginger Hotels, among others.
The hospitality industry includes players such as Oyo, MakemyTrip, and Yatra.com, backed by SoftBank, among others.
Founded in 2014, NightStay offers luxury and boutique hotel reservations on its mobile application. The company has raised $ 500,000 in seed funding from BedRock Ventures and angel investors to date, according to data from Crunchbase.
Paytm plans to leverage NightStay’s keen eye to expand its portfolio vertically. It will have access to more than 50,000 rooms and aims to increase it to 2 million hotels and accommodations around the world.
âThe launch of domestic hotel bookings is an important milestone as it helps travelers across the country easily plan and book their perfect trip on Paytm. We want to offer the widest selection of travel on our platform and look forward to continuing our expansion with the help of our trusted travel partners, âsaid Madhur Deora, Chief Financial Officer of Paytm.
Paytm Travel, founded in 2014, sold over 60 million tickets last year. In May 2018, Paytm also acquired the Chennai-based ticketing platform Ticketnew for $ 40 million, signaling its dynamism in the travel and reservations segment.
Paytm recently entered the food delivery segment in partnership with food technology startup Zomato. The Noida-headquartered company seeks to capture smaller markets through the online food ordering business.
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