India is emerging as the hotspot for startups. The IT sector of the country has been growing since the turn of this millennium. Cities such as Bengaluru, Noida Gurugram, Hyderabad, Delhi and Mumbai are the centres of most of the technology-based startups in the country.
A lot has been said about the largest unicorn of India – Paytm. It has reached valuations north of $10 billion and hence, it is now a Decacorn instead of Unicorn. It rose to glory after the demonetization move by the Indian government in late 2016. The company has been on a rise since its inception. India’s move towards a digital economy boosted that growth and has proved to be a boon for the Noida based technology giant.
Paytm has ventured into various business streams in the past couple of years as a part of its business expansion plan. The latest one that the company has ventured into is the hospitality industry. Paytm’s acquisition of Delhi based hotel-booking platform Nightstaty is a major step in towards a full-fledged travel transaction list. The valuation of the deal is reported to be around Rupees 142 crores. Paytm has also commented that they will invest another Rupees 500 crores in Nightstay to scale up its operation.
Currently, Paytm has options to book bus and flight tickets but with Nightstay, they can now allow their customers to book hotels as well. This is an added advantage for the customers considering the fact that they often give discounts/cashback/coupons with each purchase. Today’s Indian users are always in search for some or the other kind of offers before making a purchase because that is the general norm in the world of internet.
Oyo is the second largest startup in the country and Paytm has stepped somewhat in its territory. Though the work that Oyo does is a little different the purpose is more or less similar. It should be noted that the user base for Paytm is way higher than that of Oyo. Now we can see a shift of users from Oyo’s platform to Paytm because they can use Paytm for more purposes than Oyo.
People today crave for convenience more than anything else. Chinese giant Tencent’s social media messaging platform Wechat is the prime example of this. Wechat is a super application that integrates with several other applications. This lets the users use the platform for tasks such as chatting, food ordering, cab booking, online payment and so on.
Users visit Oyo’s platform to just book hotels while travelling. However, people visit Paytm almost on a daily basis for various payments that they make daily. The usability of the Paytm app is much more than its competitors and thus they have a higher chance of success than their competitors do.