After Stayzilla, hotel booking app RoomsTonite shuts down after raising $1.5 mn

Bangalore-based last-minute hotel booking app RoomsTonite has closed down operations, even as a few hotel vendors claim the company owes them dues.

Founded in 2014, RoomsTonite used to provide hotel deals. The app enables users to book hotels for up to three days in advance.

Started by IDS Solutions Chairman Suresh John, RoomsTonite eBookings offered hotel booking facility at the last minute in over 275 cities.

In an email exchange with Moneycontrol, a person claiming to be the manager of Ahmedabad-based El Dorado Hotel claimed that the company owes dues for the last six months. The claim could not be verified.

The startup raised USD 1.5 million angel funding in December, 2015 from angel investors such as Venkat Vardhan, promoter of DNA Networks, Mohammed Bin Abdul Rehman Al Khalifa, Chairman of Caravan Group, Ralph Berezan of Berezan Group and Balamurali Krishna of IDS Software.

The app was useful for those travelers whose travel plans got firmed up at the last minute.

According to a media report, a promised investment failed to materialise and due to that the company began to face funds crunch. A few employees from total workforce of 90-95 people were absorbed in IDS.

Besides IDS Software, Suresh John previously founded RezNext, an online distribution platform for hoteliers and channel managers.

The shutdown comes days after Chennai-based Stayzilla announced closure of operations.