Indian homestay platform Stayzilla has raised $13 million in funding over the past five months from existing investors Matrix Partners India and Nexus.
The retrospective announcement came via a filing at India's Registrar of Companies, which was picked up by local reports. A Matrix spokesperson confirmed with Tnooz that the report was accurate.
In purely financial terms, Stayzilla received $13 million in three separate payments - $8.8 million, $1.9 million, and $2.4 million - between November 2015 and March 2016. It follows on from an undisclosed Series A round in 2013 and a $15 million Series B last February.
The interesting part comes in the comments from Matrix's managing director Avnish Bajaj, who said that companies are looking to existing investors for funding in response to weak sentiment in the start-up sector as a whole, not just in Stayzilla's sector.
India's budget accommodation sector was active a year or so ago, with OYO Rooms leading the charge - picking up $100 million from Softbank in August before Softbank bought out OYO rival Zo Rooms earlier this year.
The argument has always been that there are thousands of properties in India which could lend themselves to being aggregated under a single brand, using a common IT platform to manage and distribute inventory. Meanwhile consumers wanted consistency and a guaranteed level of service at a decent price, bookable in advance online or via a smartphone.
Recently Google India reported that searches for branded budget accommodations in India was up 179% year-on-year. Although the Google Report didn't look at conversions, the search volume increase would suggest that the consumer demand is there.
So why then are investors, according to someone like Matrix who should know what they are talking about, be reluctant to invest? Perhaps they are running scared of Airbnb.
Airbnb does offer an option for travellers which didn't exist in India a year or so ago, in the same way that budget hotel aggregators created an option for travellers which didn't exist in India two years ago.
It has identified India as one of its fastest growing markets and has struck a number of interesting partnerships with big names such as Thomas Cook India and The Times Group to spread the word and get its brand front of mind.
And while not directly competitive with the branded budget aggregators, Airbnb does have a sway over investor sentiment. And specifically in Stayzilla's case - which does see itself as a homestay specialist - the competitive pressure is a bit more intense and direct.
Related reading from Tnooz:Airbnb continues to build presence in India (April 2016)
Thomas Cook India links up with Airbnb for international packages (Feb 2016)
Ibibo Group lands massive $250 million round to extend travel bookings online (Feb 2016)