Frotels - Building a brand of micro-stay options for travellers

Click here to request the pitch deck.

Problem statement and Frotels solution

While there are several use-cases for short-duration, there are no options to book hotels by the hour.

At Frotels we are making it possible with a strong value proposition for travelers and hoteliers.

For hotels: “Sell unsold inventory for short-duration stays e.g. people wanting to freshen up.” [600+ hotels have signed up]

For travellers: “Book hotels only for the duration you need”

Current status

(as on Feb, 2018)

  • High-quality tech platform (with channel manager integration, geo-sensing, 3600 view and comparison)  in place with excellent UI and UX
  • 600+ hotels have signed up (getting hotels to sign up is not a challenge)
  • Concept tested with encouraging results in B2C  (Will need marketing budgets to scale up)
  • Interest from large corporates for their employee travel

Plans going forward

From now till September 2018 - prove model in a small market with local promotions

  • Demonstrate operational aspects of the model (positioning, marketing program, customer engagement, etc.) in a pilot market – Shirdi or Mumbai or New Delhi (Keeping low media cost) using hoardings and visibility near railway stations as our primary marketing tool
  • Approximate budget of Rs.50 lacs

Post September 2018

  • Post proving the model and operational dynamics, we plan to expand to 5 metro cities across India (By April 2019)
  • This will get us to 10,000 bookings per month by Dec 2019

Examples of their local advertising


Existing OTAs are what people use for booking hotels. However, existing OTAs won’t be able to do this primarily because it will canibalize their primary business.

Business model and unit economics

Customers books the hotels on their mobile-responsive website (They also have an app, but don’t expect too many to download it).

Average ticket size per hotel in our current target is Rs. 1000

Frotels commission is 20%

With local outreach as described above, a city becomes cash positive with ~25 bookings per day


Pankaj Misal

CEO & Founder

Priyanka Kothmire

COO & Co-Founder

Funding needs and use of funds

They are raising Rs 50 lacs to demonstrate operational aspects of the model (positioning, marketing program, customer engagement, etc.)

  • Expected to reach break even in 6 months of operations i.e 25 to 30 bookings per day basis as per the business model explained earlier.
  • In scale up plan we would do next top 5 travelled cities replicating the pilot model. 
  • In about 6-9 months time, they will be ready to raise a follow on round of 2.5 crore to roll out the scale up activities.

Request their investor pitch deck

Click here to request the pitch deck.

Frotels is part of Qrate - a unique fundraising assistance program by the Government of Rajasthan. The program is free for startups and is open to startups across India.

The Qrate program follows the ‘Assess-Improve-Access’ model wherein startups are first provided a detailed assessment report and Applyifi scorecard, based on which startups undergo customized and group skill-building and mentoring programs. Once ready, startups are connected to investors and potential customers. Startups that graduate from the program will also get fast-tracked to pitch for grants and investments from the Government of Rajasthan.

Click this link to register -

All participating startups are given the iStart and QRate cards, which provides them access to several benefits and offers from partners. All startups start with the basic iStart card but move up the ladder – bronze, silver, gold, platinum and signature cards – as their scores improve. Depending on their Qrate score, Startups are eligible for a tiered structure of online and offline benefits, including via partners.

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