When hotels and changed the way the hotel industry operates. Now, microstays promise another such transformation in the industry, introducing the concepts of hourly stays and capsules.was founded ten years ago, it introduced the concept of budget
According to ResearchGate, micro-stay hotels are expected to grow at a rate of 14.8% by 2024. Jumping on the trend, Noida-based Brevistay has mastered the pay-by-the-hour model for the past few years.
“We have built a marketplace to connect hoteliers to guests, with the USP of anytime check-in and check-out, preferably in 3, 6 and 12 hour stay slots,” Prateek Singh, Co-Founder and CEO, Brevistay tells Your story.
Launched in 2016,was co-founded by PRateek Singh, Shubham Agarwal, Nikhil Kumar Pathak, Aditya Naithani and Avnish Kumar. He incorporated more than 3,000 hotels in 70+ cities across the country, including high-end hotels like Hyatt Bengaluru, Hyatt Pune, Pride Bengaluru, Pride Chennai, Ramada by Wyndham Hotels in Bengaluru and Lucknow, Regenta by Orchid, and many more.
“We are creating an additional revenue stream for partner hotels by selling their unsold rooms for a short term, creating a win-win scenario for partner hotels and customers. We provide hotels with our extranet panel with all the necessary customizations to make this possible,” he adds.
Brevistay’s app is available for Android and iOS users, and has over eight lakh downloads.
Prateek and Aditya had known each other since their studies at Amity University in Noida. They were on a trip to Manali, Himachal Pradesh when they came up with the idea for Brevistay.
Prateek recalls: “We took on a challenge on our trip to Manali. We wanted to check in to the hotel early, but it was charging for a full day to allow for the 7am check in. We needed the room just to freshen up and had already booked a hotel for the rest of the trip.
They realized flexibility and affordability were lacking in the hospitality industry and thought about getting started.
“We didn’t want anyone stuck at the airport waiting for their flight or having to wait until midday to check in. We explored many other use cases, allowing end users to register at any time,” he adds.
Aditya introduced Prateek to Shubham, who was good at sales and finance. The three began studying the pay-by-the-hour model in 2015. “We quit our job in 2016 and started it full-time,” says Prateek.
Avnish also faced a similar situation when he wanted hotel accommodation for a shorter duration. When his previous company was closed, he found an opportunity to work with Brevistay. “We offered him equity and he happily accepted and joined us in the business. I had known Nikhil since 2009 and he was helping the business indirectly on weekends but couldn’t leave work initially We offered him a full-time position in 2018 and he joined us as CTO,” he adds.
Currently, Brevistay has a team of 55 employees and the company aims to expand the size to over 100 by the end of 2022.
Funding and monetization
Although initiated since its creation, the startup has announced to raise Rs 3 million of Indian Angel Network (IAN) in a seed round on the occasion of its sixth anniversary on August 3, 2022. The round was led by IAN’s core investors Uday Chatterjee, Hari Balasubramanian and Sri Prakash.
“We initially invested Rs 2 lakh in the business and built a robust and profitable business over six years before raising our first round of funding through IAN,” says Prateek.
“We are breaking the pre-existing, age-old model of noon check-in and 11:00 a.m. check-out, and creating a new way of doing business. With IAN’s investment, we are looking to grow so we can bring this concept to a wider audience in more cities,” he notes.
Sri Prakash, IAN’s lead investor, believes the company has the potential to become a class leader in the hourly booking of hotel rooms and similar facilities.
“We have a commission-based business model where we charge a fixed percentage of commission (based on industry standard) on every booking made through our portal,” adds Prateek.
The startup generated a GMV (Gross Merchandise Value) of Rs 18 billion in fiscal year 2021-22, growing at a rate of 10% month after month in terms of customer acquisition, revenue and hotel acquisition. It claims to have been profitable for the past four years.
Brevistay finished eight lakh reservations on its platform. It has a daily active user (DAU) base of 25,000 and 300,000 monthly active users (MAU).
“Currently, we do not offer capsule stays but we have a plan to diversify our portfolio and we are looking to add capsule hotels to our platform”, notes the co-founder.
The path to follow
According to a report by MarketResearch.com, the hospitality industry in India is expected to reach a value of Rs 121,087 crore by the end of 2023, growing at a compound annual growth rate (CAGR) of around 13% during of the period 2018-2023. .
Brevistay is strengthening its operations in metropolitan cities like Delhi-NCR, Kolkata, Bengaluru, Chennai and Hyderabad, and also focusing on growth in Tier II and III cities like Vijayawada, Kochi, Coimbatore, Mysore, Thrissur, Kannur, Tiruchirappalli and Madurai.
In India, the startup competes with OYO, Goibibo, and Agoda as they have also entered the short stay segment. “Globally, we have platforms like Byhours and Dayuse,” says Prateek. For now, it has no plans for global expansion.
The pandemic prompted the startup to put its expansion on hold. However, the business bounced back with a Revenue growth multiplied by 1.5 in the nine months after the first lockdown and recorded a 250% jump in revenue figures in the following nine months after the second wave of COVID-19.