India Digest: RoomsTonite shuts shop; two more senior executives quit Snapdeal

Online hotel aggregator has shutdown operations, while Snapdeal is facing the exit of two more senior executives.

After Stayzilla, online hotel aggregator RoomsTonite shuts shop

Close on the heels of the much talked about shut down of Stayzilla,  another online hotel aggregator, RoomsTonite has shut shop, said a Times of India report, citing sources.

Founded in 2014 by serial entrepreneuer and IDS Solutions chairman Suresh John, Bengaluru-based RoomsTonite had raised $1.5 million in angel funding in December 2015.

The funding was led by Alchemy Capital‘s co-founder Lashit Sanghvi, Nikhil Vora- Sixth Sense Ventures, DNZ Networks‘ promoter Venkat Vardhan, Mohammed Bin Abdul Rehman Al Khalifa- chairman of Caravan Group and Ralph Berezan of Berezan Group of Canada. Vissal Mathew and Balamurali Krishna also participated in the round.

According to the sources quoted in the report, the company started having trouble with its cashflows since last August. “Some of the top executives were shifted to IDS Solutions early September. But many employees were asked to leave in February with one month’s salary, ” a former employee told the news paper.

Two more senior executives quit Snapdeal

Financially-troubled online marketplace Snapdeal is facing the exit of more senior executives, this time two AVPs at Snapdeal, Bengaluru–Balaji Hariharan, head of growth and product management, and product management AVP Hemanth Kota, said a report in The Economic Times quoting sources.

Recently senior executives like Sandeep Komaravelly, Tony Navin, Abhishek Kumar, Amit Maheshwari, Govind Rajan, CEO of Freecharge, have resigned from the e-commerce major that is facing severe competition from giants like Amazon and Flipkart.

The Gurgaon-based firm had hired Hariharan from Amazon in February 2015 while Kota had been with the company since August 2015.
According to the news report, Snapdeal had earlier planned to double the employee strength at its Bengaluru centre by end of 2015 however, the headcount is now reportedly down to about 30-40 people.

Also Read:

India: Mobile-only hotel booking app RoomsTonite raises $1.5m angel funding

India: Snapdeal to cut 600 staff, founders forego salary

India: FreeCharge CEO Govind Rajan quits

India: Matrix-backed Stayzilla shuts down, says will ‘reboot’ with different model