Hot Rumor: OYO Rooms Wants To Acquire Innov8 To Become Real Estate Behemoth Of India
With this acquisition, OYO will become a full stack real estate leasing company
OYO is now looking to set foot into the world of co-working spaces by taking over Innov8, which is a co-working company. Innov8 is already set and prevalent in four cities of India, and conquering the co-working space world will be another feather in the hat for OYO.
But wait! Is this a rumor?
As per reports, OYO spokesperson, as well as Innov8’s co-founder Ritesh Malik, both have denied this news.
What is the truth?
OYO: Two Sides of the Same Coin
OYO is already a leading platform that acts as a mediator between customers and hotel or room owners. It is also finding out new ways to gain popularity, take for instance exclusive budget brand dedicated to women, OYO WE.
While the darker side of OYO has recently been revealed where hotel owners federation boycotted OYO for offering deep discounts to customers and arbitrary changes in contracts. Also, there was the controversy of protection of users’ privacy which dragged OYO’s name in the mud again.
OYO’s Acquisitions and Achievements
OYO has already acquired startups like Weddingz, AblePlus and Novascotia Boutique Homes, which is now known as SilverKey. Innov8 will be OYO’s fourth acquisition. This will help OYO become a full stack real estate leasing company.
OYO currently boasts proudly of over 10,000 corporate customers and a connection of about 8000 asset owners. OYO has recently earned the honor of being India’s 2nd most valuable startup by raising $1 billion from SoftBank, their primary investor.
OYO, owned by Ritesh Agarwal, has also recently appointed Aditya Ghosh, former president of Indigo, as the CEO for India and South Asia.
Innov8 has been funded $4 million in a Series – A type funding by the Credence Family Office. Also, stalwarts like Rajan Anandan, Vijay Shekhar Sharma, Girish Mathrubootham had invested in the Ritesh Malik-owned company, which is headquartered in Delhi.
Innov8 was funded primarily by the Y Combinator. It currently comprises a 4,000 member community which includes corporates, startups, and individuals as well. The company charges $124 (Rs 7,999) monthly for a hot desk, dedicated desk costs $202 (Rs 12,999).
OYO and Co-Working?
As per sources, “OYO would leverage Innov8’s capabilities to strengthen its foothold in the real estate industry with a new and targeted offering.”
The news has been confirmed by these confidential sources: the deal has been in the “negotiation phase for the past couple of months.”
Although the amount involved in this deal cannot be guessed to a certainty, the deal has surely advanced in its phases and will probably be confirmed and announced in the next month.