Digital payments platform Paytm is all set to acquire last-minute hotel booking platform NightStay for around $20 million. With this acquisition, Paytm will also enter the hospitality space. The entire team of NightStay will merge with Paytm.
Paytm has been doing some monumental changes for the past few months to expand its operations and diversify its services. Earlier this month, Paytm announced Rama Subramaniam Gandhi, former deputy governor of the Reserve Bank of India (RBI), as its advisor. Paytm has also made several acquisitions in the past few months.
Paytm had acquired Chennai-based online ticketing platform Ticket New earlier this year to have a strong foothold in the ticket booking business.
In July 2017, it acquired a majority stake in Insider.in, an events ticketing platform. Last month, Paytm also acquired Tiger Global and Flipkart backed Cube 26 in order to introduce more social engagement features on its application.
NightStay is a members’ only mobile app that offers attractive prices on luxury hotels across 12 cities including Delhi, Hyderabad, Mumbai, Chennai, and Bengaluru. It was founded by Nasr Khan and Deepak Negi in 2015. The startup is popular for providing last minute bookings at low rates.
In August 2015, NightStay had raised $500,000 in a seed round from Vivek Bihani of Bedrock Venture Management Pvt. Ltd, GSF founder Rajesh Sawhney, and Shailesh Vikram Singh, who was then executive director at SeedFund.