Facts and Figures
|Month||March 2019||April 2019||May 2019|
Note: Traffic data was provided on 22 May 2019. Enquire for more recent data.
StayUncle (https://stayuncle.com) is an online booking platform exclusively for couple friendly hotels in India. We have already built a network of 1000+ hotels across 45 Indian cities that allow unmarried couples with no questions asked and guaranteed privacy. Before StayUncle it was almost impossible for a local couple to stay in a hotel unless they are married, due to conservative mindset. We've carefully selected onboarded and trained hotels all over India which welcome StayUncle guests with the highest level of service, and guaranteed privacy.
Flippa's interview with the founder: http://tiny.cc/rudv8y
How does your business make money?
Standard margin of most hotel aggregators is 10-15% on the supply price. However we are a premium brand where the service involves a great element of trust and scrutiny which is why we are able to add 20-25% on top of the supply price.
IMPORTANT: Last year the company introduced Pay at Hotel booking, also known as Pay with cash. It enables customers to pay us online only the booking fee and then pay the remaining amount directly at the hotel. This is the reason why in the PnL statement, the operational revenues appear lower this year compared to last one, because for Pay at Hotel bookings only a fraction, not the full amount is billed by the company. This said, number of transactions and net revenues remain unchanged year on year.
Why should someone buy this business?
StayUncle is at the moment generating sales and stable month-on-month cashflow with barely any customer acquisition costs. Word-of-mouth and brand loyalty is extremely strong because of our content marketing and storytelling wizardry which gives the brand a distinct personality and in return keeps the cost of new customer acquisition extremely low. Conventional financiers and VCs are reluctant to jump in because the business addresses an enormous cultural taboo in India.
Last year the company used it's past accumulation to invest aggressively in geographical expansion and developing sticky product. Which is why net profit for the past 12 months is negative. This one-time investment is about to start generating yields and pure cash flow.
How can the future owner improve this business?
The future owner could pivot from aggregator to franchise-based model, launch a distinct brand of love hotels in India and expand it across entire South Asia.
Or simply proceed to expand under the current aggregator model into smaller towns in India where the problem with couples not having a place to hang out is even more severe.
Why are you selling this business?
I have spent the past 4 years in building the business from zero to millions at a sustainable rate of growth. I find my passion more in building businesses from zero to the first $10 million rather than scaling existing businesses from $10 million to 100 million. There are emerging tech trends I want to explore and new opportunities to be part of.
- Brand and Community Loyalty
- Evergreen Niche
- High levels of Automation
- Lots of Repeat Customers
Opportunities for a new owner
- Start Selling into New Markets
- Capitalise on the Emerging Market
- Introduce Further Revenue Streams
Key day-to-day operations
- Customer Support / Service
- Managing Inventory
- Programming / Development
- Facebook Advertising
- Word of Mouth
- Brand assets
- Contracts (written or verbal) with customers and suppliers
- Custom technology
- Customer databases
- Social media accounts
- Vendor contacts
- Website files, source code and content
- Google Adwords
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
Cofounder at StayUncle.com