This pay-per hour startup allows travellers to book hotel stays for short durations

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In the year Oyo began to be established around a decade ago it pioneered its concept of low-cost hotels and revolutionized the way that the hospitality industry worked. Microstays are now a promising way to bring about similar transformation to the industry and introduce concepts such as pay-per-hour , capsule stays and.

As per ResearchGate, microstay hotels are predicted to expand at an 14.8 percent rate until 2024. Following the trend Noida’s Brevistay has been perfecting the pay-per hour model for the past few years.

In 2016, Brevistay was founded by the P rateek Singh Shubham Agarwal, Nikhil Kumar Pathak, Aditya Naithani along with Avnish Kumar. It has joined more than 3000 hotels across 70plus locations across the nation which includes luxury hotels like Hyatt Bengaluru, Hyatt Pune, Pride Bengaluru, Pride Chennai, Ramada by Wyndham Hotels in Bengaluru and Lucknow, Regenta by Orchid and many more.

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“We create an extra source of revenue for hotel partners through the sale of their un-sold rooms for a limited time and creating an opportunity for both partner hotels as well as their the customers. Hotels can avail our extranet platform with all the customization necessary to enable this,” he adds.

Brevistay’s application is available to Android as well as iOS users. It boasts more than 8 lakh downloaded.

The origins of the idea

Prateek and Aditya had been friends during their time during their time at Amity University, Noida. They were travelling from Manali, Himachal Pradesh when they came up with the idea of Brevistay.

Prateek remembers, “We faced a challenge in the Manali trip. We had hoped to have an early check-in to the hotel, but it was charging for a whole day for check-in before 7 am. We wanted the room to refresh and we had already reserved a hotel for the rest of the journey.”

Aditya Introduced Prateek to Shubham who was skilled in both finance and sales. They began to research the pay-per-hour concept in the year 2015. “We quit our job in 2016 and started it full-time,” Prateek says.

Avnish was also in the same issue when he needed hotel accommodations for a short period. When his previous venture was closed, he was offered an opportunity to partner with Brevistay.

Monetisation and financing

Although it has been a bootstrapped company since its beginning the company announced that it had raised three crore rupees through the Indian Angel Network (IAN) in a seed round to celebrate the sixth anniversary of its founding on the 3rd of August 2022. It was organized by IAN Lead investors Uday Chatterjee, Hari Balasubramanian, and Sri Prakash.

“We had invested Rs 2 lakh initially in the business and built a robust and profitable business over six years before raising our first round of funds through IAN,” Prateek says. Prateek.

Sri Prakash, the lead investor from IAN is of the opinion that the business is able to become a market leader in hourly reservation for hotel rooms and other similar services.

“We have a commission-based business model wherein we charge a fixed percentage of commission (based on industry standard) on each booking made through our portal,” Prateek says.

The startup earned GMV (Gross Retail Value) of 18 crore in the year 2021-22. It grew at a the rate that was 10% per month when it comes to revenue, customer acquisition and hotel acquisition. It claims to be profitable for the last four years.

Brevistay has successfully completed 8 lakh reservations through its platform. Brevistay has an active daily base of users (DAU) number of approximately 25,000 in addition to more than 300,000. daily Active users (MAU).

The path ahead

According to a report from MarketResearch.com the industry of hotels in India is projected to be worth around Rs 121,087 crore by end of 2023. It is expected to grow by a compound annual growth of (CAGR) of approximately 13% over the period from 2018 to 2023.

Brevistay is expanding its activities in the metro cities of Delhi-NCR Kolkata, Bengaluru, Chennai and Hyderabad and is looking to expand in Tier II and Tier-III cities such as Vijayawada, Kochi, Coimbatore, Mysore, Thrissur, Kannur, Tiruchirappalli, and Madurai.

The outbreak caused the company to stop expansion. But, the business recovered with 1.5X revenue increase during the nine months following the initial lockdown. They also saw an increase of 250 percent in its revenue in the following nine months following the COVID-19 second wave.

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