Oyo Debuts into Co-working Spaces with First INR 220 Cr Acquisition
After indefinite refusals and hesitations, it is now out in the open
News that has definitely broken the start-up bulletin board is that of hotel-chain unicorn Oyo acquiring Delhi-based co-working start-up Innov8. This acquisition has managed to subsume the business headlines.
Rumours were floating for the past few months of Oyo acquiring Innov8 but neither of the start-ups confirmed or gave out any detail. After indefinite refusals and hesitations, according to reports, it is now out in the open that the unicorn is acquiring the co-working start-up for INR 220 crore.
This will give Oyo an opportunity to debut into the co-working space, if reports are to be believed, it is all set to open 35 co-working offices over the next year in the major metropolitans of the country.
Two Companies-Successful in Their Own Stride
The acquiring deal between Oyo and Innov8 is an example of how two companies, successful in their own stride have now come together to give the business world something better and the common belief is that exciting times are supposed to come in with this acquisition.
Innov8 was founded by doctor-turned-entrepreneur Dr Ritesh Malik. Malik was also featured in Entrepreneur’s 35under35 in 2017. Innov8 founded in 2015 and backed by Y- Combinator began its journey in one of Delhi’s oldest places and heritage places, Connaught Place. The million-dollar business co-working has over 350 employees and is located in over 4 cities with 13 centres.
Oyo, on the other hand, has been on a roll. Recently, it exited from its operations in the UAE and handed over the baton of leading them to Naspers-backed Delivery Hero. The rental accommodation start-up also launched operations, Oyo Life, in partnership with Yahoo in Japan with Hiro Katsuse as the CEO. The rental company is one of India’s most valuable unicorn and business enterprise that has not just expanded its footing in the domestic territory but also has a considerable stake in the international market. From Malaysia, China to the U.K. and now Japan, Oyo’s success and growth is unstoppable and the glory of the over-achieving founder almost unmatchable.
Coming Back to the Deal…
According to media reports, Oyo is launching two other co-working brands, Workflo and PowerStation. Innov8 will be placed on the third spot. All innov8 employees have been hired by Oyo and it will continue to function as a separate entity. This partnership will give the hotel-chain enterprise an upscaling in its operations with the hand of a co-working firm now a part of its day-to-day functioning.
Now Oyo can also give a befitting competition to the big co-working giants in the country including WeWork, 91springboard etc. Innov8, although acquired but with the backing of a unicorn will have ample business opportunities to expand in ways that might have proved difficult for him initially.