MUMBAI :Hype, a Bengaluru-based luxury travel aggregator, is looking to expand globally as it carves a path in the elite travel sector. Founded by Raaghav Belavadi, a former group CEO at Accenture, and his sister Vijaya Belavadi, Hype aims to rewrite the playbook on premium travel experiences for high net worth individuals (HNIs) and ultra HNIs.
Rejecting the conventional asset-heavy model, the travel aggregator is expanding on commission-based operations, a move that has ensured profitability since the start of operations, Raaghav Belavadi said. mint. The co-founder emphasizes the rarity and prudence of this approach in a business landscape often dominated by prudent financial maneuvers.
“We work on commission and this is good enough to keep us very profitable from the first day. And I say this because today “profit” is a word that is very scarcely and scarily used. But when you use your own money, try to focus more on profitability,” he said.
The genesis of Hype can be traced to the co-founder’s globetrotting corporate life, spent in Switzerland. A combination of a personal affinity for luxury cars and a serendipitous incident gave rise to the idea of an app-driven service.
The incident was the 50th wedding anniversary of their parents which the brothers wanted to celebrate in a special way. They planned a meal at a seven-star hotel and reserved a Rolls Royce for his parents. Everyone was waiting in their silk sarees and dresses. “The Rolls Royce didn’t show up like some politician wanted. So the agency canceled our reservation and didn’t even bother to tell me,” he said.
The app, launched in 2017, defied expectations, raking in ₹34 lakh income in the first month. Currently, Hype has a presence in 23 cities worldwide, with a strong base in India, the United Kingdom and the UAE.
While luxury cars remain the backbone of Hype’s revenue, the company has strategically ventured into yacht charters and private jets, operating in several countries. The elite clientele includes corporate executives, top CEOs, and wealthy individuals, with a subscription model that offers Private membership to ₹25 lakh per annum.
“We have a private membership, which is by invitation only. We have more than a dozen members. The criterion is for them to pass between ₹50-80 lakh per year,” he added. “Get first access to ultra-premium cars, private clubs and more.
Undeterred by challenges from the pandemic, geopolitical upheavals and global economic recessions, Hype’s annual growth remains robust. “We have grown 30-40% year on year. Today, we have 14,000 cars in India, and in the world, 34,000 more. We have 400 listed dealers, more than 1,400 individual entrepreneurs. The value of the aggregated assets in the world will be more than $5.2 billion in luxury cars, $630 billion in private jets (20,000) and another $4.2 billion in yachts (1,800).
He added that the company is one of the most expensive service providers in the segment.
“What Uber does in profit from say 1,000 cars, we do from one car. We don’t have to break our heads with 10,000 customers every day. Even if we have 10 customers every day, they have to pay the bills for the rest of the month. Our highest revenue even today comes from cars. But what we do with 100 cars we do in a private jet. What we do with probably 20-30 private jets we do in a yacht. A yacht for a week could be about $150,000 and even usually a higher margin,” he explained.
Looking to the future, Hype is looking for funding to facilitate its ambitious push into the US market. The company aims to ensure ₹50 crore in funding keeping the control and vision firmly in the hands of the founders. Discussions with family offices and luxury brands such as Louis Vuitton are underway to form strategic partnerships.
“Between me and my sister, we have 91% of the company, and we want to keep the power in the boardroom to control our vision. The biggest fear is always losing the focus of the vision,” added Belavadi. Recently, actor Suniel Shetty invested an undisclosed amount in the company.
Hype’s narrative is punctuated by profitability. Belavadi claims that out of the three profitable startups – Zerodha, Zoho and Hype – his company is “far more profitable than Zerodha and Zoho combined”.
However, he declined to share the financial details of the company.
The company, it claims, has a global customer database of 2.6 million.
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