Online payments platform Paytm is all set to acquire last-minute hotel booking platform NightStay for around $20 million. The move signals Paytm’s foray into hospitality space. In the cash-plus-equity deal, Paytm will on-board the entire Night-Stay team.
Delhi-based NightStay, founded by Nasr Khan and Deepak Negi in 2015, is a members’ only mobile app, offering attractive prices on luxury hotels in 12 cities including Delhi, Hyderabad, Mumbai, Chennai and Bengaluru. The startup curates unsold inventory across business and luxury hotels and offers a concession rate for customers.
NightStay had recently raised around $10 million in funding. It initially raised a seed round of $500,000 from Bedrock Venture Management, and Rajesh Sawhney, founder of GSF accelerator, along with a follow-on undisclosed round from Lets Venture and Indian Angel Network.
Paytm has been on a divesrficatiin drive since the latest KYC rules kicked in this March. The company had recently bought online ticketing platform TicketNew to take on BookMyShow.
In hospitality space, Paytm is expected to have a fierce competition from top aggragators like Goibibo and OYO Rooms.